hi,
if a sole director limited company wants to shut down, what are the procedures? if the reason for shutting it down is high debt, is there any way to avoid paying it? what are the key debts that are unavoidable? please advice
thanks
buffalo
hi,
if a sole director limited company wants to shut down, what are the procedures? if the reason for shutting it down is high debt, is there any way to avoid paying it? what are the key debts that are unavoidable? please advice
thanks
buffalo
What you appearing to be talking about is declaring Bankruptcy. It's not something I'm very familiar with, but start here: Official Receiver's Office - Publications.
If it's a limited company owing more than HK$10,000 then a court can compulsorily wind the company up.
If it's actually a sole proprietorship then I think you would have to take personal bankruptcy to avoid the debt (but there are implications of doing this).
Last edited by PDLM; 02-03-2009 at 05:13 PM.
thx for ur reply, so pls correct me if i interpret wrongly... even for a limited company when closing with debts sole proprietor is liable for all unpaid debt personally?
No - a Limited Company, and a Sole Proprietorship are two different things. I am no expert on this. You need to talk to an insolvency specialist.
If the Limited Company has debts, which it cannot pay, then it should approach the court, and apply for voluntarily liquidation.
If it is a sole proprietor ,then approach the court for personal bankruptcy.