Legislation on Bankruptcy

BANKRUPTCY LEGISLATION IN MALAYSIA

The government of Malaysia has established strong laws and regulations in relation to bankruptcy affairs. MDI as a government insolvency regulator has given the authority to administer bankruptcy’s cases as well as winding up companies, deregistered associations and trade unions. Several laws applicable to those functions of MDI are as follows:

No.	Act/Regulation	Provision
1	Bankruptcy Act 1967 & Bankruptcy Rules 1969	Provisions of laws pursuant to bankruptcy affairs
2	Section 3(3) of Bankruptcy Act 1967	Definition of a person (debtor) subject to the bankruptcy status
3	Section 3(1) of Bankruptcy Act 1967	Presentation of petition upon the commission of bankruptcy either by creditor’s petition or debtor’s petition
4	Section 55(5) of Bankruptcy Act 1967	Financial institutions shall be notified of the bankruptcy status of an individual
5	Section 109(1)(m)(ii) of Bankruptcy Act 1967	Legal issues: A person who has been adjudged bankrupt, if being an undischarged bankrupt, he engages in business or contract. Punishment of fraudulent debtors: Imprisonment which may extend to 2 years, or with fine, or both
6	Companies Act 1965 – Part X	Provisions of winding up of companies
7	Section 283 of Companies Act 1965	Financial institutions shall be notified of the winding up status of a company
8	Societies Act 1966 and Societies Rules 1984	The affairs of societies that has been deregistered
9	Trade Unions Act 1959 and Trade Unions Rules 1959	The affairs of trade unions that has been deregistered
10	Financial Procedure Act 1957 or the Treasury Instructions	Financial and insolvency accounting affairs and asset realization activities

Reference:

http://www.insolvensi.gov.my/ms/