PUTRAJAYA: Local creditors of insolvent companies with assets within the Asean region may be able to recover their debts soon, says Datuk Seri Azalina Othman Said (pic).
The Minister in the Prime Minister’s Department (Law and Institutional Reform) said this was among the measures that are being proposed under the Cross Border Insolvency Bill to be tabled in Parliament this June.
“With the Asean Law Forum to be held this August, I had also visited several Asean nations and met with their law and judicial ministers.
“Their feedback has been very positive on cross border insolvency,” she told reporters during the Hari Raya Open House celebration here yesterday.
She said that it was crucial to get the commitment from our Asean neighbours with regard to issues surrounding the bankruptcy and insolvency of affected companies.
“This is to allow us to have cooperation so that their assets will not be left idle and can be used to settle debts among creditors,” she said.
In February, Azalina and Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali issued a joint statement on the setting-up of a Cross-Border Insolvency Working Committee to align the country’s insolvency laws with international standards.
Among the steps taken was the introduction of new laws to strengthen the cross-border insolvency management system, especially for assets that include multiple countries.
The proposed law will also support corporate rehabilitation efforts for local companies undergoing corporate rescue mechanisms.
It will also facilitate winding-up processes under the Companies Act 2016 when a company’s assets and liabilities are in more than one country.
The tabling of the Bill comes as Malaysia plans to adopt the United Nations Commission on International Trade Law (Uncitral) Model Law on Cross-Border Insolvency.
