In Malaysia, voluntary winding up of a company is the process by which a company decides to dissolve itself. This is typically done when the company has ceased operations, and its shareholders or creditors believe that winding up is the best option for the company.

The process is regulated under the Companies Act 2016 and can occur through two methods:

• Members’ Voluntary Winding Up – when the company is solvent
• Creditors’ Voluntary Winding Up – when the company is insolvent
• Members’ Voluntary Winding Up is a process for solvent companies wishing to dissolve and liquidate their operations in an orderly manner, with the liquidation managed by a liquidator and overseen by the shareholders. It is a structured and regulated way for a company to cease its business when it no longer wishes to operate but can fully pay its creditors.
• Appointment of liquidator by shareholders
• Settlement of debts to creditors and distribution of assets to shareholders
• Completion of liquidation, a final account will be filed with the shareholders and the relevant authorities
• The company is dissolved and ceases to exist as a legal entity