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Business Cancellation Service

Updated:2018-1-19 17:48:47    Source:www.tannet-group.comViews:290

Business cancellation (or "winding up") is a process by which a company's existence is brought to an end. The company may be winding up when the shareholders decide to terminate the company, due to the difficult business operation and management which can not be solved. However, the shareholders usually are not familiar with the related formalities when planning to terminate the company, so this may possibly result in the breach of relevant laws due to ignorance.   

Major Procedure for Cancellation
Broadly speaking, the liquidation process is as follows:
1. A liquidator is appointed, either by the company shareholders passing a resolution (voluntary liquidation) or by the Court making an order (compulsory liquidation).
2. The liquidator collects the assets of the company (including uncalled capital; that is, amounts unpaid on shares) and pays the creditors in order of priority.
3. The liquidator distributes any surplus funds to the shareholders.
4. The company is then formally dissolved.

After completing liquidation of company, the liquidating group needs to prepare liquidation report which, after confirmation by meeting of shareholders or China Court, will be declared with administration for industry and commerce and administration of taxation, in application for deregistration.

Consequences of Cancellation
The main consequences of the company being liquidated are as follows:
1. The company no longer has the power to dispose of its property.
2. The company may carry on business only for the limited purpose of completing the liquidation process.
3. The powers of the company directors come to an end when a liquidator is appointed.
4. A cancellation order operates as a notice of dismissal to all of the company's employees. 
5. When an application is made for a court-ordered cancellation , the court may stay or restrain any proceedings against the company as the court sees fit. When a liquidator is appointed, no person can begin or continue legal proceedings against the company or in relation to its property, unless the liquidator agrees or the court permits it.

Contact Us
If you have further inquires, please do not hesitate to contact Tannet at anytime, anywhere by simply visiting Tannet’s website www.tannet-group.net, or calling Hong Kong hotline at 852-27826888 or China hotline at 86-755-82143422, or emailing to tannet-solution@hotmail.com. You are also welcome to visit our office situated in 16/F, Taiyangdao Bldg 2020, Dongmen Rd South, Luohu, Shenzhen, China.

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