Liquidation

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The company, when decided to cease its business, must undergo a series of winding-up procedure according to regulations.

There are 3 ways of liquidation for Hong Kong Limited Companies: by members voluntarily, by creditors voluntarily, and by court order.

1. Voluntary Liquidation by Members – must satisfy the following conditions:

  • The account of the company must be complete
  • Agreed by the majority of members by passing special resolutions
  • The company is able to repay all the debts
  • A liquidator who supervise and deal with the liquidation process must be appointed

2. Voluntary Liquidation by Creditors – must satisfy the following conditions:

  • The account of the company must be complete
  • The company is unable to repay the debt and carry on its operation
  • A liquidator (must be practising CPA or lawyer) who supervise and deal with the liquidation process must be appointed by creditors

3. Compulsory Liquidation by Court Order

  • Compulsory liquidation petition can be filed by the company itself, its creditors, Registrar of Companies or Official Receiver. The court will appoint a liquidator upon delivery of winding-up order. In certain circumstances, Official Receiver will act as provisional liquidator. The whole process involves a number of meetings with directors, members and creditors of the company.

Please contact our professional team for more details.

Contact Information

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