Malaysia - Threshold to Commence Winding Up Proceedings Raised.
Legal News & Analysis - Asia Pacific - Malaysia - Insolvency & Restructuring
11 May 2021
By the Federal Government Gazette Notification No. 4159 dated 22 March 2021, the amount of indebtedness required to commence winding up proceedings under section 466(1)(a) has been fixed at RM50,000.00 with effect from 1 April 2021.
This means that a creditor may only commence winding-up proceedings against a debtor company where the debtor company has failed to satisfy a debt owed to the creditor exceeding RM50,000.00 within 21 days after a notice of demand has been served upon the debtor company. The initial prescribed amount of indebtedness under the Act was RM10,000.00. By the Federal Government Gazette Notification No. 21841 dated 30 December 2020, the threshold was raised to RM50,000.00 for a limited period from 1 January 2021 to 31 March 2021. Therefore, Gazette Notification No. 4159 effectively makes permanent the increased threshold of RM50,000.00 from 1 April 2021.
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