Who is a liquidator?
A liquidator is an officer appointed when a company goes into winding up or liquidation. He is responsible for collecting all of the company’s assets and settling all claims against the company before putting the company into dissolution.
Who is an approved liquidator?
A person must be an approved liquidator, if he is to be appointed as a liquidator for companies winding up by the Court. If he is solely performing liquidation work for voluntary winding up cases, he need not be registered as an approved liquidator.
What is the relevant legislation governing the registration and renewal of liquidators?
Section 9 of the Companies Act.
What are the requirements for applicants who are public accountants (registered under the Accountants Act) to be an approved liquidator?
Applicants to be an approved liquidator must satisfy the Registrar of Public Accountants as to his experience and capacity.
a) Evidence of “Experience” –
Public accountants must have suitable and relevant experience – “suitable and relevant experience” means audit or liquidation experience; and
b) Evidence of “Capacity” –
Public accountants must obtain a report from two referees (an applicant’s client or family member cannot be the referee), one of whom must be an approved liquidator who has supervised the applicant's work. These reports should comment on the applicant's character, his ability to perform liquidation work, his role in specific liquidation jobs (where applicable) and other relevant experience which the referee deems applicable.
What are the requirements for applicants who are non-public accountants under the Accountants Act to be an approved liquidator?
Applicants to be an approved liquidator must satisfy the Registrar of Public Accountants as to his experience and capacity.
a) Evidence of “Experience” –
Applicants must possess a minimum of 3 continuous years full time insolvency administration experience, of which any 2 years must be at a managerial or supervisory level;
b) Evidence of “Capacity”-
i) Qualification – Applicants must:
a) Have passed the final examination in accountancy of one of the following:
i) The Singapore Polytechnic for the professional diploma and for the degree course in accountancy for the years 1961 to 1969;
ii) The University of Singapore for the degree of Bachelor of Accountancy;
iii) The Nanyang University of Singapore for the degree of Bachelor of Commerce (Accountancy) or Bachelor of Accountancy;
iv) The National University of Singapore for the degree of Bachelor of Accountancy or Bachelor of Business Administration (Accountancy) Degree;
v) The Nanyang Technological Institute for the degree of Bachelor of Accountancy;
vi) The Institute of Certified Public Accountants of Singapore (formerly known as the Singapore Society of Accountants) — Association of Chartered Certified Accountants of the United Kingdom Joint Scheme; including passing one of the following examination modules:
A) Paper 10: Accounting and Audit Practice;
B) Paper 3.1: Audit and Assurance Service; or
C) P7 Advanced Audit and Assurance;
vii) The Nanyang Technological University for the degree of Bachelor of Accountancy or Master of Business Administration (Accountancy);
viii) The Institute of Certified Public Accountants of Singapore Professional Examination; or
ix) The Singapore Management University for the degree of Bachelor of Accountancy or Master of Professional Accounting; or
b) Have passed the final examination in accountancy of one of the following or its recognised equivalent:
i) The Institute of Chartered Accountants of Scotland (ICAS);
ii) The Institute of Chartered Accountants in England and Wales (ICAEW);
iii) The Institute of Chartered Accountants in Ireland (ICAI);
iv) The Association of Chartered Certified Accountants (ACCA) (formerly known as the Chartered Association of Certified Accountants); including passing one of the following examination modules:
A) Paper 10: Accounting and Audit Practice;
B) Paper 3.1: Audit and Assurance Service; or
C) P7 Advanced Audit and Assurance;
v) The Institute of Chartered Accountants in Australia (ICAA);
vi) CPA Australia (formerly known as the Australian Society of Certified Practising Accountants);
vii) New Zealand Institute of Chartered Accountants (NZICA)(formerly known as the Institute of Chartered Accountants of New Zealand);
viii) The Canadian Institute of Chartered Accountants (CICA);
ix) The American Institute of Certified Public Accountants (AICPA); or
x) The Chartered Institute of Management Accountants of the United Kingdom (CIMA), except that CIMA members shall have passed the following subjects:
A) Financial Reporting Environment;
B) Accounting and Audit Practice;
C) Advanced Taxation; and
(D) Company Law and Corporate Governance,
ii) Fit and proper –
The Registrar may refuse to register any applicant whom in her opinion is not of good reputation or character; and
iii) Reports from two referees –
Applicants must obtain a report from two referees (an applicant’s client or family member cannot be the referee), one of whom must be an approved liquidator who has supervised the applicant's work. These reports should comment on the applicant's character, his ability to perform liquidation work, his role in specific liquidation jobs (where applicable) and other relevant experience which the referee deems applicable.
How can I apply to be an approved liquidator?
You can:
a) Download and complete the manual application form;
b) Write a cheque of $100.00 made payable to “ACRA” for the application fee. Please note that the application fee which you have paid is non-refundable should your application be rejected.
c) Enclose 2 referee reports;
d) For applicants who are not public accountants, enclose the certified true copy of your professional examination certificate. This should include a certified true copy of your examination result slip. Photocopies may be certified by a Magistrate, a Justice of the Peace, Commissioner for Oaths or a public accountant; and
e) Send your application to the following address:
The Registrar of Public Accountants
Accounting and Corporate Regulatory Authority
10 Anson Road
#05-01/15 International Plaza
Singapore 079903
How long is the validity of the approval?
The certificate of approval will expire on the 31st March in the third year following the year in which the approval was granted. Example: If the approval was granted on 1 March 2010, the certificate of approval would expire on 31 March 2013 (i.e. 2010+3 years).
The submission period for the application of renewal of approval of a liquidator is from 1 March to 31 March each year. In order to have the renewal approved from the start of the renewal period i.e. 1 April of the renewal period, please ensure that the duly completed renewal application form and payment reaches ACRA no later than 7 calendar days before 31 March of the year in which the approval expires (i.e. no later than 24 March).
When can I expect an outcome of my application to be an approved liquidator?
The processing takes between 14 to 28 working days. You would be informed via post.
What are the Practice Directions issued in relation to approved liquidators?
Practice Direction No 5 of 2005: Application to be an Approved liquidator under Companies Act - Requirements as to "Experience" and "Capacity"
Practice Direction No 1 of 2007: Renewal of Approval to act as Liquidator
Additional Information to Note:
The following conditions apply to an approved liquidator who is also a registered public accountant:
i) Approval to be a liquidator will remain so long as the applicant remains a public accountant under the Accountants Act. If he ceases to be a public accountant, his approval to act as a liquidator may be revoked.
ii) A person who has been disciplined, suspended, or had his registration revoked or not renewed will have his approval to be a liquidator revoked.
iii) A person who resigns voluntarily as a public accountant may continue to be a liquidator upon an application made in writing and upon approval granted by the Registrar. The application should be made before his proposed date of resignation.
iv) Any person who ceases to be a public accountant and whose application for approval to act as a liquidator is not renewed may appeal to the Registrar to retain/reinstate his liquidator approval. This appeal in writing must provide supporting reasons.