sole proprietor issue

1114 Views  ⚫  Asked 4 Years Ago
asked on Feb 12, 2014 at 17:10
Hi everyone, recently i'm takeover a sole proprietor company ABC which the previous owner apply a credit card using the company name and owing a huge amount.(already do a changes of owner under SSM)

Am i liable to pay off the previous owner debt?

will it affect my sole prop current account?

Can i ignore it since its apply under the previous owner?

Please advise...

Thanks a lot!!!
0 had this question
Me Too
0 favorites
[ share ]
4 Answers

answered on Feb 17, 2014 at 20:01
A sole proprietor is personally liable for a sole proprietorship's (ABC) debts. Hence, debt of ABC is actually individual debt of the outgoing sole proprietor and not transferable to you, the incoming sole proprietor. Your ABC may face with problems though dealing with banks later where you need to explain to them your situation. Copies of documents from SSM (e.g. Borang B4) may come handy.
0 found this helpful

answered on Feb 21, 2014 at 18:51
recently i receive a call from 1)SPRM, 2)Compleks Makamah and 3)Lawyer Firm (as what they tell me)

1 & 2 tell me same thing, there r intend to do a verification for the existing of the business license n urge me to call the lawyer if not there is an action to cancel my business license.

3 tell me he is the bank appointed lawyer to filing my company (sole prop) to court, if i'm not make the full  payment there will continue issue summon to my personal name.

is it logic?
i already clarify im a new owner of the company but they insist to push the debt to me?
it is a debt owe by previous owner are there possible to sue me (personal name) to bankruptcy?
i never receive any lawyer letter before...

Thanks for your advice.
0 found this helpful

answered on Mar 1, 2014 at 22:15
SSM does have the right to revoke your business registration if in their opinion your business is being used for unlawful purposes or any purpose prejudicial to or incompatible with the security of the Federation, public order or morality. In your case, they can revoke your business license but the lawyer can't sue you under your personal name for the debt. How did it involve the Suruhanjaya Pencegahan Rasuah Malaysia?
0 found this helpful

answered on Mar 5, 2014 at 15:57
those ppl from the list above all under a roof = "Debt Collector"
they bring up a lot of story just wan me make payment.

If im not settle the debt of previous owner i may having trouble to continue the sole prop business
(especially deal with bank) right?

can i close the sole prop immediately = no trouble at all?

0 found this helpful

Your Answer

By posting your answer, you agree to the privacy policy, cookie policy and terms of service.