Winding up is a more formal company liquidation procedure that involves the orderly winding-up of the company affairs, the appointment of a liquidator to manage the process of realizing the company assets, ceasing or sale of its operations, payment of its debts (if any) and distribution of surplus assets (if any) among its members. Please note: These guidance notes are not intended to be definitive legal advice and should not be relied upon as such. By Registrar of Companies on suo-motto; By Application of Company for removal of name/ Strike off of Company; 2. 2. Summary; 216. Winding-up in Nigeria is primarily governed by the Companies and Allied Matters Act Cap. Winding up a company deals with ending business affairs whilst liquidation is the sale of a company’s assets and usually the final step before striking a business off the register. Sectoral requirements may also apply, for example pursuant to provisions of Banks and Other Financial Institutions Act Cap. Voluntary strike off ... are of the opinion that the company will be able to pay its debts in full within 12 months of the commencement of the winding up. The company can be left to be struck off – strike off is automatic and free of charge. 2. One is informal, has very little administration attached to it, can be done by a company director and costs about £10. 4 Most Important differences between Dissolution and Winding Up are listed below: Dissolution: 1. Q16. Company strike off, also referred to as Dissolution, is the process by which a Limited Company is removed from the register by Companies House.The processes effectively … Strike off and dissolution is covered in legislation under: the Companies Act 2006 in part 31 and sections 1000 , 1001 , 1003 the Companies Act 1985 in sections 652 and 652a According to the companies ordinance 1984 a company can be wound up in the following three ways or you can say these are the types of winding up of a company. The proceeds collected are used to discharge the company’s debts and liabilities and the remaining balance (if any) will be is distributed amongst the contributories according to their entitlement. 1. Company strike off is the cheapest way to close a Private Limited Company (ie. In liquidation, the process to reinstate a struck off company involves a High Court application and is costly. Liquidations are dealt with briefly in our blog post Ireland: Liquidation, Receivership and Examinership, Simply Explained. Applying to have a company struck off the register and dissolving it is a very different approach to winding up a company and liquidating. The winding up of a company, or liquidation, is a process where the company’s assets are seized and realised (converted into cash), with the proceeds from the seized assets being used to pay off the company’s debts, creditors and liabilities. Any monies remaining after all debts, expenses and costs have been paid off are distributed amongst the shareholders of the company. The procedures are laid down in Part V of the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. dissolved without having to undertake the formal process of winding up. ADVERTISEMENTS: 3. The company is effectively on “stand-by” for a 7 year period, and can be restored at any point during that time by paying all outstanding licence fees, penalties and restoration fees. This is also because the winding-up file contains all affidavits and other cause papers that had been filed. As from April 2020, HMRC will become a secondary preferential creditor for unpaid VAT, PAYE and income tax on any winding up. Striking a company off and putting a company into liquidation are two different forms of dissolution and when considering the most beneficial way to wind a company down, it is important that you are aware of the differences between the two. Voluntary Strike Off & Voluntary Winding Up. The dissolution of a company is recorded and registered by the Registrar of Companies. can make use of EES if it matches the criteria and go for strike off as against Winding Up. A Singapore company may decide to shut its doors for a variety of reasons, but winding down operations can be a lengthy, complex process. C20, Laws of the Federation of Nigeria (LFN) 2004 (CAMA), Winding-Up Rules 2001 (WR) and subsidiary legislations. 4. The most important factor in the decision making process will be whether or not the company has outstanding debts and has assets that need distribution . Winding up proceedings pending before High Court relating to voluntary winding up; All the proceedings pending before the High Courts till April 1, 2017, shall continue to be dealt with by the High Courts in accordance with the provisions of 1956 Act. Members’ voluntary winding up – Practical procedure; 213. It may be affected when the Registrar exercises his power under Section 308(1) to strike a defunct company off the register and under Section 308(3) where the Registrar strikes off a company that has been wound up. HIGHLIGHTS OF THE COMPANIES ACT 2016 By: Nor Azimah Abdul Aziz Deputy CEO (Regulatory & Enforcement) Companies Commission of Malaysia So what is the difference between these options and what are the processes to follow? A liquidator (i.e. Difference between Public and Private Company; Methods or modes of winding up of a Company. ... Before you apply to strike off your company you must tie up any loose ends, such as paying any remaining creditors, disposing of any remaining assets and closing the company’s bank account. Court appointed receiver and a privately appointed receiver; 219. 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