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What Does Dissolving a Company Mean?
Dissolving a company means de-registering it (it will no longer be listed as a company in the register of the Companies Commission of Malaysia (SSM)) and causing it to cease its existence in legal terms.
How Do You Dissolve a Company?
A company is dissolved if it is struck from the register by the Registrar of Companies (in the Companies Commission of Malaysia), or if the company is dissolved via court order.
So, What Happens to Your Shares When a Company is Dissolved?
Section 556 of the Companies Act 2016 provides for the power of the Registrar to represent a dissolved company in certain circumstances where it is proved to the satisfaction of the Registrar that the dealing, transaction or matter is purely administrative in nature.
Section 557 provides that the outstanding assets of dissolved companies to vest in the Registrar. Upon vesting of the assets in the Registrar, the Registrar may, in accordance with Section 558 dispose or deal with such estate or interest in the property as he deems fit in the following manner:
by public auction;
by public tender; or
private contract.
Basically, this means that the shares of a dissolved company are in the control of the Registrar of Companies.
How Can I Get My Money Back?
It is possible to file a claim with the Registrar to obtain what is owed to you by the company. An application must be made together with an application fee of RM500 along with relevant documents to substantiate your claim against the company. The application is made pursuant to Item 30(a) of the Schedule (Regulation 8) of the Companies Regulations.
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