ACRA can strike off a company under section 344(1) of the Companies Act 1967 if there is reasonable cause to believe that a company is not carrying on business or is not in operation (e.g.  failing to file annual return.)  When this happens, the Registrar will give notice of her intention to strike the company’s name off the register (“Striking Off Notice”).

 The Striking Off Notice will be sent to the company, its directors, company secretaries and shareholders. 

 A director with at least three companies struck off by ACRA within a period of five years could be disqualified by ACRA. Once disqualified, an individual will not be allowed to be a company director or take part in the management of any local or foreign company for five years, effective from the date on which the third company is struck off. A disqualified director cannot take on any new appointment as a director or be in any way directly or indirectly concerned or take part in the management of a company. For the avoidance of doubt, the striking off of the three companies refers to striking off initiated by the Registrar and does not include voluntary applications for striking off.

1. Why have I received an ACRA-initiated Striking Off (ASO) notice?
A: ACRA can strike off a company under Section 344(1) of the Companies Act 1967, if there is reasonable cause to believe that a company is not carrying on business or is not in operation (e.g. failing to file an annual return). When the striking off process commences, ACRA will send a letter to give notice of the intention to strike the company’s name off the register (“Striking Off Notice”). The Striking Off Notice will be sent to the company, its directors, company secretaries, and shareholders. 

 Section 344(1) of the Companies Act 1967 states that where the Registrar has reasonable cause to believe that a company is not carrying on business or is not in operation, the Registrar may send to the company, and its directors, secretaries, and members, a letter to that effect. If an answer showing cause to the contrary is not received within 30 days after the date of the letter, a notice will be published in the Gazette with a view to striking the name of the company off the register.

2. What do I need to do to prevent my company from being struck off?
A: (a) If you wish to object to the striking off, please submit an “Objection against striking off” via Bizfile within 30 days from the date of the Striking Off Notice. There is no fee payable for this transaction. The status of the company at this stage is still “Live” and the company remains registered with ACRA. More details on how to lodge an objection can be found here under 'Who can object and how to lodge an objection against striking off'. For a step-by-step guide, you can refer to this document.

Please also ensure that your annual returns are filed up-to-date. Under Companies Regulations, the failure to file annual returns is a circumstance to which the Registrar may have regard when determining whether a company is carrying on business.

(b) Common errors when filing an objection via Bizfile
When filing objections, do ensure that all mandatory fields are completed. If you encounter “This field is required” error when lodging an objection via Bizfile, please update your corporate email address via Manage > Update information > Update entity information > click ‘edit’ Basic information > check ‘Update entity email address’ and provide ‘Entity email address’. After the corporate email address is updated, you can proceed to lodge the objection again.

3. What happens if no objection is lodged within the 30 days after the date of Striking Off Notice 
A: If no objection is received within 30 days after the date of the Striking Off Notice, ACRA will publish the name of the company in the Government Gazette, with a view to striking the name of the company off the register. This is known as the First Gazette Notification. At this stage, the status of the company is “Gazetted to be Struck Off”.

After 60 days from the First Gazette Notification, if there is no objection, ACRA will publish the name of the company in the Government Gazette and the name of the company will be struck off the register. The date that the company is struck off will be stated. This is known as the Final Gazette Notification. At this stage, the status of the company is “Struck Off”. This means the company has been removed from ACRA’s register and no longer has legal existence.

4. What happens when my company is struck off ACRA’s register?
A: Under Section 155A of the Companies Act 1967, a director who has three or more of his companies struck off the register by ACRA under Section 344(1) of the Companies Act 1967 within a period of five years will be disqualified from acting as a director. Once a person is disqualified, he will not be allowed to be a director or take part in the management of any company for a period of three years commencing after the date on which the third company was struck off. A repeat offender will be disqualified for a period of five years.

Debarment Order

The Registrar is also empowered to debar any director or company secretary for non-compliance with their statutory duties under the Companies Act (CA), including failure to lodge any documents, for a continuous period of 3 months or more. A debarred person cannot take on any new appointments as a director or company secretary of other companies.
If a director would like to appeal to ACRA for a review of the summonses issued against him or to reduce the composition sum or late filing penalty (for Annual Returns), he would have to complete this eForm and attach supporting documents for the appeal.

The processing time for appeal is generally 4 weeks, depending on its complexity. This may take longer during peak period or if further clarifications are required. Each appeal is assessed and considered on its own merits.

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