The court may presume that a company as being unable to pay its debts if any of the following occurs:
A creditor (can be by assignment) who is owed more than RM10,000 (it was previously RM500 under the Companies Act 1965) serves a ‘statutory demand’ (usually called the 218 notice) for the debts due and it is not paid or secured, or compounded to your satisfaction, within three weeks.
The 218 Notice/ now the 465 Notice (the new Companies Act 2016) must be served on the company at its registered office.
A creditor obtains judgment against the company and execution proceedings is unsatisfied in whole or in part; in other words the sheriff or bailiff is unable to seize enough assets to sell in order to satisfy the debt.
It is proved to the satisfaction of the court that the company is unable to pay its debts when they fall due; the court may take into account of the contingent and prospective liabilities of the company.
What happens after winding up?