Companies Commission Malaysia issues revised guidelines on application to strike off name of company under section 550 of Companies Act 2016

29 May 2019

On 19 April 2019, the Companies Commission of Malaysia (“CCM”) issued the following revised guidelines pursuant to section 550 of the Companies Act 2016 (“CA 2016”).

  • Guidelines on application by directors or members to strike off the name of a company under section 550 of the Companies Act 2016: Pursuant to section 549(a) of the CA 2016, the CCM Registrar may exercise his discretionary right to strike the name of a company off the Companies Register if he has reasonable cause to believe that the company is not carrying on business and is not in operation. The Registrar may form his opinion based on, amongst other things, an application made by a director or shareholder of a company under section 550 of the CA 2016 requesting him to exercise his discretionary power. Several other requirements under section 550 of the CA 2016 will also need to be fulfilled before the Registrar may proceed to strike off the name of a company. These Guidelines provide guidance to directors and members of a company in relation to these procedures.   
  • Guidelines on application by liquidator to strike off the name of a company under section 550 of the CA 2016 which is being wound up: These Guidelines set out the requirements for an application to strike off the names of companies which are being wound up in accordance with section 549(d) of the CA 2016. The Guidelines provide that the Registrar may exercise his discretion to strike a company which is being wound up off the Companies Register if he has reasonable cause to believe that (i) no liquidator is acting, (ii) the affairs are fully wound up and the liquidator has been in default for a period of six months in lodging any return required to be made by him, or (iii) the affairs of the company have been fully wound up pursuant to a compulsory winding-up by the court and there are no assets or the assets available are not sufficient to pay the costs of obtaining an order of the court dissolving the company. Further, the Guidelines also set out the procedures for the application by a liquidator if a company has been wound up by way of members’ voluntary winding-up or creditors’ voluntary
    winding-up, or wound up by the court.

Reference materials

Both Guidelines are available on the CCM website www.ssm.com.my or by clicking the links below:

 

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