KUALA LUMPUR: The Malaysian Government has established the Cross-Border Insolvency Working Committee (CBI-REFORM-WC) to align the country’s insolvency laws with international standards.
The committee will review the adoption of the United Nations Commission on International Trade Law (UNCITRAL) Model Law on Cross-Border Insolvency and recommend a standalone act for cross-border insolvency in Malaysia.
The announcement was made in a joint statement today by the Minister in the Prime Minister's Department (Law and Institutional Reform), Datuk Seri Azalina Othman Said and Domestic Trade and Cost of Living Minister, Datuk Armizan Mohd Ali.
They both co-chaired the first meeting of the Cross-Border Insolvency Main Committee on Feb 4.
"The adoption of the UNCITRAL Model Law will strengthen the cross-border insolvency management system, especially for assets that span multiple countries.
"The new legislation will also support corporate rehabilitation efforts for local companies undergoing corporate rescue mechanisms,” the statement said.
It also noted that the model law will facilitate winding-up processes under the Companies Act 2016 when a company's assets and liabilities are in more than one country.
The drafting of the new law is expected to be tabled in Parliament in June, pending approval from the Cabinet, it said.
"The clarity and transparency of this legal reform initiative align with the MADANI government's strategy to implement sustainable and competitive economic transformation, and attract high-quality investments,” the statement stressed.- Bernama
