Striking Off: A Comprehensive Overview

Striking off is a statutory mechanism in Malaysia whereby a company is removed or deregistered from the Companies Commission of Malaysia (SSM) register. This process is typically initiated for companies that are no longer in operation or have ceased business activities and wish to legally dissolve without going through the formalities of winding up.

 

Criteria and Procedure

For a company to be eligible for striking off, it must not have commenced business or ceased operations, have no outstanding debts or liabilities, and not be involved in any legal proceedings. The striking-off application must be made to SSM, accompanied by a declaration that the company meets all the criteria.

 

Legal Implications and Compliance

Upon approval, the company’s name is removed from the SSM register, effectively releasing the directors and shareholders from their duties and liabilities associated with the company. It is crucial for companies seeking to strike off to ensure compliance with all regulatory requirements, including settling all tax obligations and notifying all interested parties.

Striking off provides a straightforward and cost-effective way for non-operational companies in Malaysia to conclude their business affairs legally. However, careful consideration and adherence to the process are essential to avoid any future legal or financial repercussions.