The New Companies Act 2016

Debt Recovery

Judicial Manager Corporate Voluntary Arrangement Debt Recovery

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How will the  Judicial Manager and  Corporate Voluntary Arrangement affect the Recovery of  your  Million Dollars Debts as Unsecured Creditors

Seminar Programme Outline

1    Corporate Insolvency &  Recovery as an Unsecured Creditors  under  the Companies Act  2016 regime
1.1     The  New Solvency Test
1.2     Judicial Management
1.3     Corporate Voluntary Arrangement
1.4     Coming into force of  the New Companies Act 2016

BEFORE THE NEW ACT COMING INTO FORCE

2      Options available  to the  Unsecured Creditors
2.1   I was told if we start a Companies Winding Up petition as an Unsecured Creditors, the bankers will get paid first?
2.2   Will show you  how to get paid ahead of the Bankers.

3      Since the new Act is not in force yet what must the Unsecured Creditors do now?
3.1   Are my present winding up petitions affected?
3.2     Shall I start a Companies Winding Up Petition against my  debtors before the New Companies Act 2016 comes into force?
3.3     If I commence a Companies Winding Up petition:
3.3.1     Do I need a Judgment?
3.3.2     Can I file a Companies winding up Petition by sending a statutory Notice only without getting a judgment?

The Companies Act 2016

AFTER  COMING INTO FORCE

4     The   Unsecured Creditors   and the New Companies Winding Up laws
4.1     What is the threshold (the minimum amount of debt) to issue the  Statutory Notice (formerly the 218 Notice)
4.2     Is the Solvency Test applicable to Companies Winding Up  proceedings?
4.3     When is the commencement of Winding Up?
4.4     If the Unsecured Creditors should present a Petition is there Any Priority with respect to Costs incurred?

4.5     What is “Stay” and “Termination” of Winding Up
4.6     Directors in wound up companies can continue to hold office?

CHAPTER 11?

5     How does Corporate Voluntary Arrangement (CVA) work against  the  Unsecured Creditors
5.1     What is a CV A’s appointment of a nominee?
5.2     Who is a qualified insolvency practitioner (section 394 of the Act)
5.3     What is a moratorium period and how long will it last?
5.4     What can the creditors do during the Moratorium period?
5.5     Are the creditors entitled to vote in favour or against the CVA?
5.6     Can ALL companies apply for CVA?

A JUDICIAL MANAGER FOR COMPANIES IN THE RED

6     Under what circumstances can a Company apply for Judicial Management how will  the Unsecured Creditors be affected?
6.1     Is being unable to pay its debts the only consideration?
6.2     What is preserving its business as a going concern.
6.3     Who is an insolvency practitioner
6.4     A judicial management order granted by the Court will remain in  force for how long?
6.5     What actions cannot be taken against the Company during the  judicial management?
6.6     Extension of the judicial management?

Bonus Chapter: If time permits

7     Something for Nothing?  Getting out of the JVA Get out clause!
7.1     Joint Venture Agreements Get Out Clause and the Recent the Federal Court 2016 Decision
7.2     Interpretation of word “and” by the Court in section 223 Companies Act 1965 (new section 472)
7.3     What must you do to avoid this


8      We were involved in the winding up of a company,
8.1   The company was WRP ASIA PACIFIC SDN. BHD. (hereinafter “WRP”) one of the largest glove producers in the world;
8.2   An application was made to place WRP under Judicial Management;
8.3   One of the purposes of a Judicial Management Order is to prevent a Companies Winding Up Order;
8.4   We have successfully obtained leave (permission) from the High Court to proceed with our Companies Winding Up Petition, please click here to obtain a copy of the Grounds of Judgment with respect to the same, and please click here for a Court of Appeal order showing that the appeal was struck out with costs of RM5,000.00 (**for English translation of the said Court of Appeal Order, please refer to Pages 5 and 6).

Please click here for more information on the upcoming seminars to be presented on the above topics, organised by Legal Logic Asia, MIA, MAICSA and other organisers.

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One Thought on The New Companies Act 2016
    Jeong cp
    24 Feb 2017
    9:04am

    An excellent piece on judicial management companies act 2016.

    The new law remains a mystery to many…..

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