|ARE YOU SURE WANT TO EXIT YOUR BUSINESS?|
Closing down a sole proprietorship
- Notify the local municipal council in writing of your decision to close down the business; and
- Place a Notification of Disclosure of Business with the Registrar of Business (ROB) within 14 days from the date of termination.
- Conclude any ongoing contracts;
- Sell stock and remaining assets;
- Collect outstanding debts / receivables;
- Pay creditors and all statutory debts and liabilities including taxes and amount due to the Employees Provident Funds (EPF) and SOCSO;
- Notify all interested parties eg: banks, landlord, customers, suppliers, local council and registering bodies;
- Distribute the remaining money to yourself.
Selling off to another person
Dissolution of a Company
Striking off a Company
- Unanimous resolution by the shareholders/Directors;
- No outstanding balance/amount owed to CCM or any government departments in the form of penalties or compounds ;
- No unsatisfied charges;
- No outstanding tax balances;
- Not a holding company or a subsidiary of another holdings company;
- Not a Guarantor Corporation;
- No assets or liabilities during strike off or dissolution;
- Not made any return of capital to its shareholders/directors/stakeholders;
- Not involved in any legal issues pertaining the company inside and outside of Malaysia; and
- Any information required is up-to-date.
- The Company has a large share base;
- The Company has retained profits;
- The Company has recent business activities;
- The Company recently has disposed of a property;
- The Company has unsettled debts; and/or
- The Company is involved in a legal suit and/or action.
Winding up a Company
Dissolving a Partnership
Effect of Bancruptcy
|EXITING A BUSINESS IN MALAYSIA|
- Establishing the company’s strategic vision
- Determine what roles and skills are critical for the growth of the company
- Examining the field of potential heirs, buyers and other successors
- Creating the ideal scenario for your departure from the company
- Determining the value of your company, its receivables, and potential debts
- Determining the succession’s tax implications and how to reduce them
- Analyze and address the gaps revealed by the planning process
- Deciding how roles will be shared among the heirs, identify and understand the developmental needs of employees to fill those positions
- Ensure that all key employees understand their career paths and the roles they are being developed to fill
- Train people for skills and positions that are not presently existing in the company
- Understand the time needed to backfill key roles
- Enrich succession plans through regular executive discussion of people and posts
- Determining who will coach the successor and identify top performers in all departments
- Make sure that top performers are engaged and satisfied to stay with the company for a long period
- Continually review and check the process of succession and whether planned individual development has taken place
- Top Down Approach
- It should be driven by the business owner or the CEO in any case of business succession, they have to fuel commitment and make it work
- Strategic Plans
- The plan must focus on the culture and strategy of the business. The plan should include strategies to put the business interests ahead of any person’s interests and should emphasize merit over personal position.
- Future Goals
- The plan will have identified where the business is going and what it needs to get there. The succession plan should focus on who is needed to lead the business if it is going to accomplish the mission.
- Workforce Requirement
- You should aware that top leaders can be made or grown by the business, using a blend of many approaches:
- experience and training outside of the family business and industry;
- formal education and training courses;
- internal job assignments, job rotation, special projects;
- community and professional organization leadership.
- Knowledge Retention
- Managers must be evaluated on their ability to develop subordinates, not just on their own job skills. The existing management (family members and non-family members) should share in the responsibility for identifying and pursuing their development activities like those mentioned above.
- Critical Roles
- The employee performance evaluation process should include assessment by multiple raters. For example, a manager being rated not only by his superior but also by colleagues on his same or peer level and by subordinates.
- Talent management strategies will only be successful if the family and business is committed to making it a part of everyone’s job responsibility.