Insolvency Act 2016 Malaysia

The companies act 2016 uses the term insolvency practitioner to describe a liquidator of a company while there will now be a reference to the insolvency act 1967 for the bankruptcy of individuals.

Insolvency act 2016 malaysia. Judicial management a company facing imminent insolvency proceedings may now resort to judicial management a concept which has long been available in other common law countries. There have been welcome developments in the law governing corporate restructuring and insolvency introduced by the new malaysian companies act 2016. The use of the term insolvency may cause some slight confusion in future. The companies act 2016 also makes some significant changes to malaysia s corporate insolvency regime as it introduces two new insolvency processes.

Advertisement however the most important aspect of preventing bankruptcy truly lies in each individual s financial prudence when it comes to borrowing and repayments. It also modifies the existing law relating to schemes of arrangement. Legal information from the uk malawilii is a member of the global. Legal information from africa.

Two significant developments introduced under the companies act 2016 relate to judicial management and corporate voluntary arrangements. Judicial management and voluntary administration. Insolvency 13 laws of malaysia act 360 insolvency act 1967 an act relating to the insolvency and bankruptcy of an individual and a firm and for connected matters. 2 introduction of the rescue mechanism.

For example the high court did not appear to consider in detail whether uda had notice of puncak s insolvency and whether this would have barred the operation of insolvency set off under the statutory scheme of section 41 of the bankruptcy act nor was it considered or argued by either parties in the wider context of the arbitrability of insolvency related issues. 30 september 1967 be it enacted by the seri paduka baginda yang di pertuan agong with the advice and consent of the dewan negara and. Corporate voluntary arrangements and judicial management. The companies act 2016 is anticipated to come into effect in late 2017.

Minister in the prime minister s department datuk seri azalina othman said had introduced an amendment to the bankruptcy bill 1967 in hopes to reduce the bankruptcy rates in malaysia. 1 section 6 1 limitation act 1953 2 section 6 3 limitation act 1953 3 section 90 subordinate courts act 1948 4 section 65 subordinate courts act 1948 5 order 13 rules of court 2012 6 order 48 rules of court 2012 7 order 49 rules of court 2012 8 order 45 rule 12 rules of court 2012 9 companies act 2016 10 companies winding up rules 1972 11 mco.