INSOL International is the International Association of Restructuring, Insolvency & Bankruptcy Professionals. It is a world-wide federation of national associations for accountants and lawyers who specialise in turnaround and insolvency.
As I have updated in my earlier article, the amendments to the Bankruptcy Act have now all come into force on 6 October 2017. We should now all be referring to it as the Insolvency Act 1967, instead of the old Bankruptcy Act 1967.
As a reminder, the new term Insolvency Act 1967 still merely refers to individual insolvency or individual bankruptcy. It does not involve corporate insolvency. Further, even under the Insolvency Act 1967, it continues to refer to the act of bankruptcy and the bankruptcy order.
Going hand in hand with the renamed Insolvency Act 1967, there are now a host of new rules that come along with the Act. Continue reading →
On 3 October 2017, the Companies Commission of Malaysia (SSM) is holding the SSM National Insolvency Conference 2017 entitled ‘Corporate Restructuring & Insolvency under Companies Act 2016: A Paradigm Change’. I have been involved in the organising of the sessions and it promises to be a very interesting conference. The registration fee is RM700.
I will be speaking and moderating Session 2 on ‘Corporate Rescue Mechanism: How It Will Work’. Joining me will be Mohamed Sufyan Mohamed Mokhtar from SSM and Victor Saw of PwC.
Under the Companies Act 2016, the corporate rescue mechanism is made up of corporate voluntary arrangement and judicial management. Although the corporate rescue mechanism provisions have not been brought into force yet, it is anticipated that these provisions will come into effect by May 2018. In the meantime, the new draft Corporate Rescue Mechanism Rules are close to being finalised as well.
In our Session 2, the speakers will be fleshing out the application of the corporate voluntary arrangement and judicial management through factual scenarios. That should assist in seeing the practical implementation of these new mechanisms.
The other topics covered at the National Insolvency Conference are:
The World Bank’s Perspective on Debtors’ and Creditors’ Rights.
New Guidelines in Striking Off of Companies and Asset Management of Dissolved Companies.
Impact of the Companies Act 2016 on Winding Up.
What It Takes to Become an Insolvency Practitioner.
The full brochure and registration form can be found here.
In the Court of Appeal’s grounds of judgment dated 10 August 2017 of Gan Bee San v Malayan Banking Berhad, the Court of Appeal allowed an appeal and set aside a winding up order. The decision confirms the growing list of appellate authorities where the Court has the inherent jurisdiction to set aside a winding up order. The brief facts are below.
At the end of August 2016, one of the world’s largest container shipping companies, Hanjin Shipping Co Ltd, filed for rehabilitation proceedings at the Korean Bankruptcy Court. The Korean Bankruptcy Court granted provisional orders to preserve Hanjin’s assets.
There was immediate chaos. Around the world, some of Hanjin’s vessels in ports were seized while other vessels were stranded out at sea for fear of being seized.
To aid the rehabilitation proceedings in South Korea, it has been reported that Hanjin will seek court protection from more than 40 countries to preserve Hanjin’s assets.
Against this backdrop, I set out the ongoing legal developments in such a cross-border insolvency scenario and how these developments may affect Malaysia.