The Registrar is empowered to strike off a company if there is reasonable cause to believe that a company is not carrying on business or is not in operation. For example, failure to file with ACRA the ARs for a few consecutive years.
Directors with at least 3 companies struck off by ACRA* within a period of 5 years will be subject to disqualification. Once disqualified, the individual will not be allowed to be appointed as a company director or take part in the management of any local or foreign company. The disqualification period for directors disqualified for the first time is three years, commencing after the date on which the last company is struck off by ACRA. Directors who have a similar previous disqualification will be disqualified for five years, commencing after the date on which the last company is struck off by ACRA.
*This refers to striking off initiated by the Registrar and does not include voluntary applications for striking off.
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.
Making an Appeal to ACRA
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.