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Q：
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What is the main difference between striking off and winding up?
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A：
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The main disparity between striking off and winding up lies in the purpose and complexity of the processes. Striking off is a simpler process for dissolving inactive companies, while winding up involves a more complex liquidation of assets to pay debts and it involves the appointment of a liquidator to manage the process.
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Q：
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What is a liquidator’s primary role?
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A：
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The main role of a liquidator is to conclude the company’s activities by collecting and realising its assets, resolving all unpaid debts to creditors, and allocating any leftover assets to the shareholders based on their individual entitlements. When the winding up process begins, the company's directors cease their power to manage its operations, and all responsibilities are assumed by the liquidator immediately. It is incumbent upon the liquidator to ensure that, upon the conclusion of the proceedings, the company is entirely dissolved.
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Q：
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Who can be the liquidator in a voluntary winding up?
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A：
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According to Section 433(2) of the Companies Act 2016 (CA 2016), any individual can be appointed as a liquidator in members’ voluntary winding up and creditors’ voluntary winding up provided that the appointment receives the approval of its members or the majority of its creditors.
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Q：
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Who can be the liquidator in a compulsory winding up?
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A：
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Only an approved liquidator or the Official Receiver may be appointed as the liquidator in a compulsory winding up.
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Q：
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Can a company be restored after striking off, and how does that differ from winding up?
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A：
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Yes, a company that has been struck off can be restored to the register within 7 years by applying to the Court. In contrast, once a company is wound up, restoration is not possible unless specific legal grounds exist.
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FAQ
