Case Studies

Advisory on Dissolution of a State Government Subsidiary (MPSAS

A state government agency (“the State Agency”) was considering to wind up one of its subsidiaries (“Subsidiary A”).

Subsidiary A has several significant assets, liabilities, and commitments.

The State Agency requires advisory on

01

Financial effect of dissolution of
Subsidiary A.

02

The step-by-step procedures for dissolution.

03

Transfer of remaining assets, entitlements, liabilities, and commitments of Subsidiary A.

What we delivered

  • Identifying those assets that can’t be immediately realised through collection and providing advisory on further necessary action.

  • The step-by-step procedures (with the necessary resolutions of the Board and the members) of assets transfer (to the parent body) and realisation of various assets. The step-by-step procedures for settlement of various liabilities.

  • The pro-forma statement of financial positions and statement of comprehensive income showing the effect of various stages of dissolution.

  • Estimating the full financial impact to the Group on the dissolution of the Subsidiary.

Dissolution of a subsidiary