winding up

Malaysia’s Cross-Border Insolvency Bill Embraces the UNCITRAL Model Law

Lee ShihLeave a comment

Parliament has now tabled Malaysia’s long-awaited Cross Border Insolvency Bill 2025, marking a landmark step in the country’s insolvency reform.

With this move, Malaysia signals its adoption of the UNCITRAL Model Law on Cross-Border Insolvency (Model Law) and joins more than 60 jurisdictions in implementing a harmonised framework for managing cross-border restructuring and insolvency proceedings.

I had earlier co-written an article on the case for Malaysia’s adoption of the Model Law.

This article outlines 10 key features of the Bill and its expected impact on Malaysia’s insolvency landscape. Continue reading →

Ex Parte Interim Judicial Manager Appointed Over Listed Company

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Financially-distressed public listed company, Sarawak Cable Berhad, is placed under interim judicial management. Its former lawyers obtained an ex parte order to appoint an interim judicial manager over the company.

With the amendments to the Companies Act 2016, this is the first instance of a judicial management application being applied to a listed company.

I have had a read of the judicial management court papers and also read the various Bursa announcements to piece together the following chronology.

Continue reading →

Case Update: Court of Appeal Confirms Liquidator Cannot Grant Sanction for Legal Proceedings

Lee ShihLeave a comment

On 16 November 2023, the Court of Appeal in Oren Venture Sdn Bhd v Small Medium Enterprise Development Bank Malaysia Berhad (Court of Appeal Civil Appeal No. W-02(IM)(MUA)-587-04/2022) upheld the High Court decision (reported at [2022] 12 MLJ 247 and where I had written about it here).

Set out below is the extract from the Court of Appeal cause list website and with the Court setting out the brief grounds of decision (in the Malay language only). The full written grounds of decision do not appear available yet. I may write a fuller update once I have read the written grounds.

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6 Recent Developments in Restructuring and Insolvency: Malaysia Insolvency Conference 2023

Lee ShihLeave a comment

 

The Malaysia Insolvency Conference 2023 was held on 21 June 2023 and it made a return to a physical setting after 3 years. We saw a record turnout of attendees from the restructuring and insolvency community. I spoke at a panel session titled ‘Landmark Cases: Sharing on Insolvency and Restructuring’ and spoke with fellow insolvency specialists.

I set out a selection of 6 key recent trends we discussed and prepared for the panel discussion. I have also supplemented some of the legal points with additional research I made.

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Case Update: Liquidator Cannot Grant Sanction for Continuation of Litigation

Lee ShihLeave a comment

The High Court in Small Medium Enterprise Development Bank Malaysia Berhad v Oren Venture Sdn Bhd and 3 others (grounds of judgment dated 4 March 2022) decided on the liquidator granting sanction for legal proceedings.

The crucial issue before the Court was whether a liquidator of a wound-up company can issue a sanction, or delegate to another person, the liquidator’s power to bring or defend any action or other legal proceedings in the name and on behalf of the company.

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Case Update: Federal Court Decides On Duty of Liquidator of a Wound-up Listed Company

The Malaysian LawyerLeave a comment

Nathalie Ker writes an update on the Federal Court decision on the duties of a liquidator of a listed company.

The Federal Court has now issued its grounds of judgment (dated 31 March 2022) allowing the appeal of Bursa Malaysia Securities Berhad (Bursa) in Bursa Malaysia Securities Berhad v Mohd Afrizan bin Husain (Appeal No.: 02(f)-39-07/2021(W)). The grounds of judgment may be found here. The Federal Court reversed the earlier Court of Appeal decision.

The Court addressed two main issues. First, whether Bursa was obliged to immediately delist a listed company upon the company being served with a winding up order (pursuant to Rule 16.11(2) of the ACE Market Listing Requirements (AMLR)). Second, the duty of a liquidator as the person in control of the management of a listed corporation to ensure compliance with the Listing Requirements. Continue reading →