In the High Court decision of Re SG & Sons Sdn Bhd (grounds of judgment dated 10 February 2021), the Court has confirmed that the local authority’s assessment rates is not a priority debt in a winding up.
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winding up
Case Update: Federal Court Decides on Threshold for Winding Up Based on Illegality
In Tan Keen Keong @ Tan Kean Keong v Tan Eng Hong Paper & Stationery Sdn Bhd & Ors and other appeals [2020] MLJU 2204 (grounds of judgment dated 17 December 2020), the Federal Court dealt with an important question of law for a just and equitable winding up.
What is the threshold for winding up a company based on allegations of illegality or breach of statute? Continue reading
Case Update: Factors for Deciding Between Competing Liquidator Nominees
The High Court in Re Rentak Arena Development Sdn Bhd (In Liquidation); Ex Parte Spanland Sdn Bhd and Another Case [2020] MLJU 2133 (see the grounds of judgment dated 18 November 2020) provided useful guidance on factors considered when there are competing nominees to be appointed as liquidator of a company.
Malaysia’s Winding Up Moratorium Ends
In summary, Malaysia’s winding up moratorium period came to an end on 31 December 2020. However, the RM50,000 minimum threshold is now maintained up to 31 March 2021. Continue reading
Top 5 Articles on The Malaysian Lawyer in 2020
We end the year by looking back at the most-read articles on The Malaysian Lawyer in the year 2020. Thank you to the readers for all the support and for dropping by this site of ours.
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Featured below are our five most-read articles in 2020. Perhaps consistent with the challenging times of 2020, four out of the five articles deal with some form of closing down or retrenchment Continue reading
Case Update: Fraudulent Trading Rebooted
The High Court in the Sulaiman & Taye decision (see the grounds of judgment dated 8 July 2020 of Ong Chee Kwan JC) deals with very significant issues in relation to fraudulent trading. Fraudulent trading is where directors of a company have to bear personal liability for the debts of a company in winding up. This is because the directors carried on the business of the company with the intent to defraud its creditors. In particular, whether the delinquent directors bearing personal liability then has to pay directly to the aggrieved applicant or to pay into the wound up company’s assets for the general benefit of all the creditors. Continue reading