Winding up is a process where the company’s asset will be gathered and will be used to pay all debts, and the balance for the cost of winding up will be distributed among the shareholders according to their interests in the company.

For a Sendirian Berhad company, the process and the procedure of winding up comes under the Companies Act, 1965. Meanwhile, for the sole proprietor and partnership the procedure for winding up is under the Registration of Businesses Act, 1956.

A company can be wound up in two circumstances: