For those involved in the restructuring and insolvency field, I thought it would be useful to set out all the relevant provisions, subsidiary legislation and documents for the corporate rescue mechanism in Malaysia. Corporate rescue under the Companies Act 2016 is corporate voluntary arrangement and judicial management.
Relevant Sections and Documents
- Corporate Voluntary Arrangement sections: 395 – 402 of the Companies Act 2016.
- Judicial Management sections: 403 – 430 of the Companies Act 2016.
- Coming into force date on 1 March 2018 – PU(B) 106/2018
- Companies (Corporate Rescue Mechanism) Rules 2018 (CRM Rules) (issued on 1 March 2018)
- Practice Directive No. 4/2018 – Documents under Division 8, Part III of the Companies Act 2016 (issued on 1 March 2018)
- Guidelines for Corporate Rescue Mechanism under Division 8, Part III of the Companies Act 2016 (issued on 5 December 2018)
- Court’s Practice Directive No. 1/2018 on the code classifications for corporate rescue for court filings.
Filing of Court Papers and Lodging of Documents
In practice, I still see some confusion. So for the legal practitioners, we have to file in Court the forms as set out in the First Schedule of the CRM Rules. In addition, there will often be concurrent or other forms to be lodged with the Companies Commission of Malaysia. These are found in Schedules B and C on its website. The Schedules B and C forms are updated from time to time so practitioners will need to check for the latest version.
- Judicial Management Case Study.
- The First Judicial Management Decision in Malaysia.
- Corporate Rescue Mechanism in force 1 March 2018.