The winding-up of a VCC is provided for under the VCC Act and it may be wound up by:
• its members voluntarily, by passing a special resolution for winding up, or
• opt for a 'creditors' voluntary winding up” if its directors believe that it cannot, by reason of its liabilities, continue its business, or
• by a court order provided the conditions under the VCC Act are satisfied. In addition, a sub-fund may be wound up. When winding up a sub-fund, all shareholders of a sub-fund should redeem their shares (where appropriate).
There are certain additional grounds for the winding up of a VCC. For example:
• the VCC is being used to conduct business outside its permitted use as a vehicle for CIS only;
• the VCC does not have a fund manager duly registered, licensed or exempted by MAS to manage its property for such period as may be prescribed by the regulations under the VCC Act; or
• the VCC breaches its AML/CFT obligations.
Members' Voluntary Winding up
A VCC may decide to wind up its affairs voluntarily if the directors believe that the company will be able to pay its debts, in full, within 12 months after the commencement of the winding up. The VCC will appoint a liquidator, or provisional liquidator, to wind up its affairs and file the necessary notifications required under the VCC Act. For more details, you may wish to refer to the VCC Act or seek professional advice.
Creditors' Voluntary Winding up
A VCC may decide to opt for a 'creditors' voluntary winding up” if its directors believe that it cannot, by reason of its liabilities, continue its business. The VCC will appoint a liquidator, or provisional liquidator, to wind up its affairs and file the necessary notifications required under the VCC Act. For more information, you may wish to refer to the VCC Act or seek professional advice.
Compulsory Winding up
A VCC may be wound up under an Order of the Court under certain circumstances e.g. the VCC is unable to pay its debts. The Court may appoint a liquidator to wind up the affairs of the VCC. Where no liquidator is appointed by the Court, the Official Receiver shall be the liquidator of the VCC.
The liquidator will file the necessary notifications required under the VCC Act. For more information, you may wish to refer to the VCC Act or seek professional advice.
Receivership
The property of a VCC may be placed under receivership, for example, if a receiver is appointed to enforce a charge for the benefit of holders of debentures of the company. For more information, you may wish to refer to the VCC Act or seek professional advice.