ck88888 wrote:Hi dnlei,dnlei wrote:hi guys, i am of similar situation with ck.
i am a sleeping partner in a pte ltd with a partner and general partner went missing last few years. Finally made up my mind to totally put this sh*t away by ceasing the company.
@ck: i understand you approached 2 lawyers which come to a solution to wind up, what would be the est. legal fee expected for such service?
i sent my story to my cousin's legal firm and she told me it would cost 20K which is totally exceeded way off what my paid-up capital and my remaining cash balance in the corporate bank account.
@all: assuming if i just wan to break free from the company and striking my name from the registrar and can forgo any cash balance in the corporate bank account. Anyone know of the range for legal fee for handling such situations?
many thanks in advance.
Sorry to hear of your predicament. The resident expert in this forum is Stong Eagle but I will be happy to share what I know:
The lawyers I went to were basically for consultation on the approaches that I could undertake. If they were to take over my case then, for any business entity, it will only go to the high courts and the charges ranges from 20-30K easily which is money down the drain really, more so in your case since you just want to cease the existence of this Pte Ltd.
In your case to cease the company, you can opt to do a winding up or a striking off to get struck off ACRA's records.
For winding up, there are a few types namely, Compulsory winding up (where your creditor will file to the high courts to have your company wound up to recover whatever monies that they can, unlikely in your case), members voluntary winding up (where the shareholders initiate the winding up themselves) and creditors voluntary winding up (where the shareholders know that the company is insolvent but decide to wind up the company voluntarily as liquidation of their assets will assist to pay back the debts owing to the creditors). Hope I remembered the above correctly.
For a simpler and costs effective method, you may opt for a striking off instead. A company can be struck off once it is in a state of no net assets and liabilities. Thus, you will require your books to be balanced etc before filing to ACRA. I believe for your case, this is the most costs efficient approach. Of course, I believe to initiate this proceedings, you will need to call a AGM and have a 75% vote in favour of this motion thus you will need to consider the shareholding allocation in your company to achieve this especially if your partner is MIA.
To get your name off the registrar for this company, you will be required to resign from the company and some official documents will need to be signed and endorsed by all shareholders/directors of the company I believe. Since your partner has been MIA, I m not sure how you intend to resolve this. You can feed us more info for us to advise you further.
Hope the above can aid you in your decision making.
I do not have any/much info with regards to the business to make a proper accounting/books to be balanced in order to fill them to the ACRA.
What i have are some paperworks/transactions records and the MIA partner particulars.
I do not know what i should do when there is only me and the other MIA partner in the co.
I couldn't reach him at the contact number and wonder if i should go find him in person via the address on his NRIC.
Also i rem signing some empty checks before(years back), is it possible to approach the bank to freeze the corporate account ?
And in cases that i couldn't find him, will i be in any possible debts if i leave things as it is?