For solvent companies which cannot qualify for strike off, the directors and shareholders may wish to consider MVL to close a solvent company. For MVL, the following requirements must be met:
· Majority shareholders (75% or more) agree to wind up the company; and
· Majority directors must form the opinion and declare that the company will be able to settle all its liabilities within 12 months of commencing the MVL.
A liquidator will be appointed to look into the affairs of the company and the scope of work will include:
· drafting, preparation and filing of resolutions and documents (such as declaration of solvency);
· submission of accounts to ACRA and Comptroller of Income Tax;
· taking over of the bank accounts and administration of the funds;
· distribution of surplus assets to shareholders; and
· arrangement of final meeting.
Our professional fees to act as liquidator for the scope of work set out above is S$8,000 (excluding disbursements). In the event that the liquidator is required to realize assets, adjudicate debts, distribute payments and address complex matters not made known to us prior to the assignment, additional fees will be charged.
Disbursements are payable in addition to the professional fees outlined above and may include advertisements, lodgment fees, commissioning expenses, printing and photocopying. Disbursements is estimated to be in the region of S$3,000.