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Q：
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What is striking off a company?
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A：
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Striking off a company refers to the legal process of removing a company from the official register of companies, effectively dissolving it. Under Section 550 of the Companies Act 2016, the Companies Commission of Malaysia (“CCM”) has the authority to remove a company from the register if it meets the prescribed conditions.
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A：
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What are the criteria for striking off a dormant company?
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A：
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A company may apply for striking off if it meets all the following conditions:
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It has not commenced business since incorporation or has ceased operations for at least 12 months
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It has no assets and liabilities
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It has no outstanding charges in the Register of Charge
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It has no outstanding penalties or compounds with CCM
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It has no outstanding tax liabilities with the Inland Revenue Board (LHDN), Employees Provident Fund (EPF), Social Security Organisation (SOCSO), and other relevant authorities
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Its information with CCM is up-to-date
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It is not involved in any legal proceedings within or outside Malaysia
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It has not made any return of capital to shareholders
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It is not a holding company
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It is not a “Guarantor Corporation”
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It has no bank account or the bank accounts has been closed
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Q：
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What is the timeline for the striking off process?
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A：
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The striking off process may take approximately 6 to 12 months to complete, depending on CCM’s review process and whether any objections are raised by creditors or shareholders.
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Does a company still have any obligations after being struck off?
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Once a company is struck off, it ceases to exist as a legal entity and can no longer conduct any business activities. However, under Section 554(1) of the Companies Act 2016, any outstanding liabilities of the company remain enforceable against its directors and officers. Additionally, the Court retains the power to wind up a struck off company if there is proof that the company has assets that can be realised.
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Q：
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Can a struck off company be restored?
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A：
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Yes, a struck off company can be restored. Under Section 555 of the Companies Act 2016, any party affected by the striking off may apply to the Court for reinstatement of the company within seven years from the date it was struck off.
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FAQ
