For each of the insolvency procedures outlined below, there must
exist the following connecting factors between the corporate debtor
organization and the law of the forum:
Liquidation
Generally, the corporate debtor must be incorporated under the
Companies Act 1965 or any previous predecessor enactment and resident
in Malaysia with a registered office in Malaysia. However, an
"unregistered corporation" which is defined as a foreign company,
i.e. a company incorporated outside Malaysia, may be wound up
if it has assets in Malaysia and debts incurred in Malaysia have
not been settled.
Special Administration
The debtor organization can be either a company incorporated
in Malaysia or outside Malaysia, but it must have assets and liabilities
and secured creditors within Malaysia.
Court Approved Schemes of Arrangement
The jurisdiction of the court is limited to schemes in respect
of corporate debtors incorporated under the Companies Act 1965
or any previous predecessor enactment and resident in Malaysia
with a registered office in Malaysia.
