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by sundaymorningstaple » Mon, 03 Jun 2013 8:26 am
You will probably never see all of it, but eventually, you might see some of it. The company will have to be wound up (either voluntarily or instigated). Salaries and CPF contributions will be paid out of any proceeds in the liquidation of the company and collection of any outstanding receivables. After these things are paid (Salaries first then CPF) if there is anything left then remaining creditors (who put their hands up in the beginning of the receivership) will be remitted xx cents on the dollar of any remaining funds. Unfortunately, physical assets are worth next to nothing and it doesn't sound like there are any other type of assets either.
In Singapore, I believe, the directors can be held liable if they were instrumental in any illegal/improper dealings, but this may well have to be dealt with in a civil court. I'm not a lawyer so don't really know, although I was instrumental in winding up my first employer in Singapore while on an EP. The Australian owner/director hired me as GM and went to Australia (never to return as she was afraid they would impound her passport). While down there she asked me to become a director (a week after hiring me), to which I said no. Afterwards, I started delving into the financial status of the company and had a major shock. No assets and half a million in debt, Income taxes not paid for several years and other major problems with arrears CPF although salaries had been paid. Unfortunately, try as I might, I was not able to turn it around as she had run it far to deep in the red. I was not required to handle the winding up of the company as I was not an officer but with a letter of indemnity from the owner, I acted on her behalf to assist the court receivers. It took some 3 or 4 years and one day I had a massive posting in my CPF account of all my arrears CPF that had not been paid. It took a while but eventually, enough of the receivables had been recovered to cover 100% of the CPF arrears, albeit I lost any interest that would have been earned on it had it been timely credited to my CPF account.
So, my best advice to you is if you are not the only "victim" is to gather all together and see a lawyer who can give you direction. I also understand that if the Director has deliberately broken the law that the local law will disregard to concept of "seperate legal entity" as well. If you are talking about a year's CPF & 4 months wages, I'd not wait until the director has left the country as that is what will probably happen (as in my case).
SOME PEOPLE TRY TO TURN BACK THEIR ODOMETERS. NOT ME. I WANT PEOPLE TO KNOW WHY I LOOK THIS WAY. I'VE TRAVELED A LONG WAY, AND SOME OF THE ROADS WEREN'T PAVED. ~ Will Rogers