Winding Up Statutory Demand Threshold at RM50,000 from 1 April 2021

Starting from 1 April 2021, the threshold for the issuance of a winding up statutory demand is now fixed at RM50,000.00.

Through this gazette notice (GN No. 4159), the Minister has set this prescribed amount. This is consistent with the powers of the Minister under section 466(1)(a) of the Companies Act 2016 to prescribe the minimum amount of indebtedness for the issuance of a statutory demand for winding up.

Less than Half of Company Winding Up Petitions in 2020 compared with 2019

 

The Edge Malaysia reported in its 29 March 2021 issue that fewer companies were wound up in 2020 compared with 2019. The article shared two interesting statistics they obtained from the Companies Commission of Malaysia. Continue reading

Case Update: Court Will be Slow to Second Guess Liquidator’s Decision on Proof of Debt

The Court of Appeal in its grounds of judgment dated 18 March 2021 in Sunrise Megaway Sdn Bhd (in liquidation) v Kathryn Ma Wai Fong set out the principles when there is a challenge on a liquidator’s decision to admit or reject a proof of debt. Exceptional circumstances are required to second guess the liquidator’s decision.
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Malaysia’s COVID-19 Act: Contractual Reliefs Extended to 30 June 2021

Malaysia’s Temporary Measures for Reducing the Impact of Coronavirus Disease 2019 (COVID-19)  Act 2020 (the COVID-19 Act) (I have written more about the COVID-19 Act here) will see an extension of its key relief on the inability to perform contractual obligations. The relief has been extended to 30 June 2021.
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Speaking at Book Launch: Meetings, Minutes and Resolutions

On Tuesday 23 March 2021, I will be one of the co-speakers at the forum held in conjunction with the virtual book launch of CLJ’s Company Meetings, Minutes and Resolutions in Malaysia. Delighted to see the launch of this book written by Kenneth Foo Poh Khean and Leong Oi Wah.

The book covers essential requirements, rules and principles in company meetings, minutes and resolutions. This book provides two dimensions in the areas of meetings, minutes and resolutions from the legal perspective and the practical insights supported by examples, legal precedents and explanations.

You may register for the free Zoom session for the forum over here. The book is available for purchase over here.

First Criminal Charge under Malaysia’s Corporate Liability Provision

On 17 March 2021, the Malaysian Anti-Corruption Commission (MACC) announced that the MACC will be making the first charge under Malaysia’s corporate liability provision – section 17A of the MACC Act.

MACC’s press release is set out below (in the Malay language only):

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