Yew Huoi, How & Associates | Leading Malaysia Law Firm

Menu

WINDING-UP – OFFICIAL RECEIVER AND LIQUIDATOR (“ORL”)

1. Responsibilities of the Official Receiver and Liquidator in Mandatory Company Liquidation:

In cases of compulsory winding up, the court would appoint a liquidator under s.478 of the Companies Act 2016 (“CA 2016”) to expeditiously recover and realise the assets of the wound-up company for the distribution of dividends to creditors and administer any outstanding matters involving the wound up company.

If the court does not appoint a person as liquidator, the ORL will become the interim liquidator by virtue of s.477(1)(a) of CA 2016. As an officer of the court that is entrusted to deal with the company’s property, the ORL holds a duty to account all action taken in dealing with the company’s assets. In implementing the duty, due diligent, transparency and accountability of all aspects of insolvency practice are paramount and indispensable.

It is beneficial to glance through Malaysian Department of Insolvency’s website (mdi.gov.my) to find out the role and duty of ORL.

2. How the ORL Fulfills Responsibilities in Administering and Examining the Affairs of Court-Liquidated Companies:

  • The ORL must diligently investigate the company’s records to accurately ascertain the ownership of the company’s properties.
  • Relying solely on land searches for property ownership verification is insufficient and does not align with the ORL’s primary duty to thoroughly investigate the company’s affairs.
  • The ORL must therefore take comprehensive measures to confirm that properties are indeed owned by the company undergoing liquidation.

3. Illustrative Scenario:

Company X, a developer, sold a property to individual Y under a sale and purchase agreement, with the property’s strata titles listing Company X as the registered owner. Subsequently, Company X was liquidated by the court. In such cases, an ORL appointed by the court cannot sell the property to a third party based only on land searches of the title documents, especially if individual Y’s name is not listed on these documents.

4. Case

Malayan Produce Company Sendirian Bhd v Landbanq Sdn Bhd (in liquidation) & Anor [2023] 6 MLJ 840

Back to Latest Legal Updates

Recent Post

FAMILY LAW – CHILDREN’S CUSTODY – CUSTODY DISPUTES IN MALAYSIA: ESSENTIAL INSIGHTS ON CHILD WELFARE AND PARENTAL ROLES

In a recent custody dispute, the court emphasized the importance of child welfare, reaffirming the maternal custody presumption for young children unless strong evidence suggests otherwise. In high-conflict situations, the court favored sole custody over joint arrangements to minimize stress on the children. This case underscores that Malaysian parents should provide credible evidence for their claims and focus on practical, child-centered solutions.

Read More »
31 October ,2024 No Comments

BREACH OF CONTRACT – DAMAGES – FORESEEABILITY AND FAIRNESS IN FREIGHT LIABILITY CLAIMS

In JSD Corporation v Tri-Line Express [2024] 1 Lloyd’s Rep. 285, the court set a clear precedent on damages for property claims, ruling that only foreseeable and proportionate losses are recoverable. Applying principles akin to Hadley v Baxendale, the court allowed for repair costs if intent to remedy was evident but rejected double recovery, underscoring that damages must reflect actual loss without overcompensation. This decision serves as a guide for Malaysian courts, emphasizing fair and balanced recovery in line with foreseeable damages.

Read More »
31 October ,2024 No Comments

ADMIRALTY IN REM – SHIPPING — FUEL OR FREIGHT? COURT CLEARS THE AIR ON GLOBAL FALCON BUNKER DISPUTE

In a decisive ruling on the Global Falcon bunker dispute, the court dismissed Meck Petroleum’s admiralty claim for unpaid high-sulphur fuel, finding that the fuel was supplied not for operational purposes but as cargo. With the vessel lacking necessary equipment to use high-sulphur fuel and evidence pointing to its transfer to another vessel, the court determined that Meck’s claim fell outside admiralty jurisdiction, leading to the release of the vessel and potential damages for wrongful arrest.

Read More »
31 October ,2024 No Comments

COLLISION COURSE – COURT WEIGHS ANCHOR DRAGGING AND LIABILITY AT SEA

In a collision that underscores the high stakes of maritime vigilance, the court ruled that Belpareil bore the brunt of the blame for failing to control its dragging anchor and delaying critical warnings. Yet, Kiran Australia wasn’t off the hook entirely—apportioned 30% fault for its limited evasive action, the case serves as a stark reminder: in maritime law, all vessels share responsibility in averting disaster, even when one party’s errors loom large.

Read More »
31 October ,2024 No Comments

GENERAL AVERAGE – PIRATE RANSOM DISPUTE: SUPREME COURT RULES CARGO OWNERS LIABLE IN THE POLAR CASE

In the landmark case Herculito Maritime Ltd v Gunvor International BV (The Polar) [2024] 1 Lloyd’s Rep. 85, the English Supreme Court upheld the shipowner’s right to recover a USD 7.7 million ransom paid to Somali pirates under general average. The Court ruled that cargo interests, despite their arguments regarding charterparty terms and insurance obligations, were liable to contribute to the ransom payment. This decision reinforces the importance of clear contractual provisions when seeking to limit or exclude liability in maritime contracts particularly matter relating to general average.

Read More »
31 October ,2024 No Comments
en_USEN
zh_TWZH ms_MYMY en_USEN
× Contact Us