Newsletter
A COMPANY SUSPENDING ITS BUSINESS MAY ENDER FOR GOVERNMENT PROCUREMENT
According to the Public Construction Commission's letter dated April 2, 2009, the Company Act does not prohibit a company suspending its business from tendering for procurement. It is within the purview of the agency receiving the bid to determine whether such company may tender for a procurement project. Furthermore, during the suspension period, the legal personality of the company suspending its business does not change. Therefore, unless the tender documentation prohibits otherwise, tendering of a bid by such a company should be allowed. If the tenders comply with the tender documentation, such company can be awarded the contract. However, the company cannot enter into a contract with the procuring entity unless it applies for resuming its business after the award, and the procuring entity may require the company to complete business resumption within a time limit.