(a) a creditor having a debt exceeding RM500 has served on the company
by leaving at the registered office a demand requiring the company
to pay the sum so due, and the company has for 3 weeks thereafter
neglected to pay the sum;
(b) execution or other process issued on a judgment, decree or order of
any court in favour of a creditor of the company is returned unsatisfied
in whole or in part; or
(c) it is proved to the satisfaction of the Court that the company is unable
to pay its debts; and in determining this the Court shall take into
account all liabilities of the company.
S 217 CA 1965 / s 464 CA 2016 Lay down the parties who may petition.
scheme of -corporate
arrangeme voluntary
Scheme of nt arrangeme
arrangement (S.176- nt (S.397)
181E)
judicial
manageme
nt (S.404)
*take note new commercial insolvency test under s 112 -114 CA 2016.
S 1776 CA1965 provides for Court approved compromise with creditors and members.
s.398 - an automatic moratorium ( protection from any legal proceedings) shall commence
upon the filing of a CVA in Court .
s.406 - shall be for a period of 6 months with an extension of 6 months on the application of
the JM with notice to Directors, creditors, members, Registrar CCM and any other relevant
persons.
s.407 - a nominee for a JM shall be an insolvency practitioner, who is not the auditor of the
company.