A company is perpetual. This means that it is a going concern until there is action taken to cease its existence.

A Variable Capital Company (VCC) is a type of company. This particular corporate structure will remain a going concern until the VCC is wound up or struck off.

The way a VCC is struck off is similar to the way a typical private company limited by shares is struck off. A few minor differences would be that the VCC is likely to have an umbrella fund and one or more sub funds. The sub fund must first be dissolved before the main umbrella fund can be struck off.

Therefore, the sub-funds have to be dissolved and any objection to the dissolution of the sub funds cleared before we can proceed to apply for the umbrella fund to be struck off. This is because the striking off of the umbrella fund is dependent on there not being any liabilities remaining.

In the event that the sub fund is dissolved and there is an objection, the person objecting can file an objection. This individual can also file such an objection to the striking of of the VCC. The application to dissolve the sub fund or to strike off the VCC cannot proceed until the objection is cleared.

If you want to know the difference between striking off and winding up a company, do refer to this link: https://www.singaporesecretaryservices.com/closing-down-your-singapore-company-winding-up-and-striking-off-a-company/.

 

If you need assistance with dissolving a VCC sub fund or to strike off a VCC, you may contact [email protected].

Yours sincerely,

The editorial team at Raffles Corporate Services