A structured plan leading towards the proposed strike-off
WAN NADZIR & CO.CHARTERED ACCOUNTANTS · AF1234Corporate & Transaction Support
Planning the Dissolution of a State Government Subsidiary
A state government agency required a coordinated plan to resolve the financial, corporate and regulatory matters of a subsidiary before proceeding with its proposed strike-off.
Assignment snapshot
Resolving remaining balances, commitments and transfers
Coordinating corporate, tax and regulatory requirements
The assignment
Closing a company requires more than a final application.
The Agency was considering the closure of a subsidiary that still held significant assets, liabilities and commitments.
Before an application for strike-off could be considered, the remaining financial and corporate matters needed to be resolved in the correct sequence. The Agency therefore required a practical work programme that brought the different actions into one coordinated plan.
The challenge
Resolve the remaining matters.
Coordinate the sequence.
- 01
Identify the subsidiary’s remaining assets, receivables, liabilities and commitments.
- 02
Determine how unresolved balances and obligations should be realised, settled, transferred or novated.
- 03
Consider the financial effect of the proposed dissolution on the parent and the wider Group.
- 04
Coordinate the necessary resolutions of the Board and members.
- 05
Address the relevant tax, regulatory and corporate clearance requirements.
- 06
Sequence the actions required before an application for strike-off could be made.
Our approach
From the existing position to strike-off readiness.
We organised the assignment around the matters that had to be resolved before the subsidiary could move towards closure.
This connected the treatment of assets and obligations with the necessary corporate decisions, financial reporting effects and external clearances, allowing the Agency to see the complete sequence rather than a collection of separate tasks.
Position assessment
Identify the subsidiary’s remaining assets, liabilities, receivables and commitments.
→Resolution planning
Determine how each balance and obligation could be realised, settled, transferred or novated.
→Approvals & clearances
Map the necessary corporate resolutions, notifications and regulatory actions.
→Strike-off readiness
Set out the remaining actions required before the proposed strike-off application.
What we delivered
A coordinated work programme for the proposed closure.
- Step-by-step closure work programme
- Proposed treatment of remaining assets and receivables
- Plan for settling or transferring liabilities and commitments
- Identification of the necessary Board and members’ resolutions
- Pro forma financial statements at relevant stages of the closure
- Assessment of the financial effect on the Group
- Roadmap for tax and regulatory clearances
- Actions required to prepare for the proposed strike-off
The outcome
A clearer route towards an orderly closure.
The Agency received a coordinated roadmap for resolving the subsidiary's remaining financial, corporate and regulatory matters.
The work programme gave the Agency a practical sequence for progressing the proposed dissolution and preparing the subsidiary for the eventual strike-off process.
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