{"id":1528,"date":"2015-03-16T17:49:47","date_gmt":"2015-03-16T09:49:47","guid":{"rendered":"http:\/\/alexchanglaw.com\/?p=1528"},"modified":"2021-02-18T15:24:07","modified_gmt":"2021-02-18T07:24:07","slug":"how-prove-court-company-unable-pay-debts","status":"publish","type":"post","link":"https:\/\/alexchanglaw.com\/index.php\/how-prove-court-company-unable-pay-debts\/","title":{"rendered":"How do I prove to the court that the company is unable to pay its debts?"},"content":{"rendered":"<p><!--more--><\/p>\n<figure id=\"attachment_1159\" aria-describedby=\"caption-attachment-1159\" style=\"width: 190px\" class=\"wp-caption alignleft\"><img loading=\"lazy\" class=\"size-medium wp-image-1159\" src=\"http:\/\/alexchanglaw.com\/wp-content\/uploads\/2015\/02\/ACC-CWU-Handbook-75dpi-190x300.jpg\" alt=\"Alex Chang Companies Winding-Up Handbook\" width=\"190\" height=\"300\" \/><figcaption id=\"caption-attachment-1159\" class=\"wp-caption-text\">Companies Winding-Up Handbook<\/figcaption><\/figure>\n<h6><a href=\"http:\/\/alexchanglaw.com\/index.php\/bagaimanakah-membuktikan-bahawa-syarikat-tidak-mampu-membayar-hutang\/\">&#8220;Versi Bahasa Malaysia&#8221;<\/a><\/h6>\n<p>The court\u00a0 may\u00a0 presume that a company as being unable to pay its debts if any of the following occurs:<\/p>\n<p>A creditor (can be by assignment) who is owed more than RM10,000 (it was previously \u00a0RM500 under the Companies Act 1965) serves a &#8216;statutory demand&#8217; (usually called the 218 notice) for the debts due\u00a0 and it is not paid or secured, or compounded to your satisfaction, within three weeks.<\/p>\n<p>The 218 Notice\/ now the 465 Notice (the new Companies Act 2016) \u00a0must be served on the company at its registered office.<\/p>\n<p>OR<br \/>\nA creditor obtains judgment against the company and\u00a0 execution proceedings\u00a0 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.<\/p>\n<p>OR<br \/>\nIt is proved to the satisfaction of the\u00a0 court that the company is unable to\u00a0 pay its debts when they fall due; the court may take into account of\u00a0\u00a0 the contingent and prospective liabilities of the company.<\/p>\n<p>What happens <a href=\"http:\/\/alexchanglaw.com\/index.php\/what-happens-after-compulsory-winding-up\/\" target=\"_blank\" rel=\"noopener noreferrer\">after winding<\/a> up?<\/p>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":1804,"featured_media":1695,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[5,46],"tags":[],"_links":{"self":[{"href":"https:\/\/alexchanglaw.com\/index.php\/wp-json\/wp\/v2\/posts\/1528"}],"collection":[{"href":"https:\/\/alexchanglaw.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/alexchanglaw.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/alexchanglaw.com\/index.php\/wp-json\/wp\/v2\/users\/1804"}],"replies":[{"embeddable":true,"href":"https:\/\/alexchanglaw.com\/index.php\/wp-json\/wp\/v2\/comments?post=1528"}],"version-history":[{"count":8,"href":"https:\/\/alexchanglaw.com\/index.php\/wp-json\/wp\/v2\/posts\/1528\/revisions"}],"predecessor-version":[{"id":8369,"href":"https:\/\/alexchanglaw.com\/index.php\/wp-json\/wp\/v2\/posts\/1528\/revisions\/8369"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/alexchanglaw.com\/index.php\/wp-json\/wp\/v2\/media\/1695"}],"wp:attachment":[{"href":"https:\/\/alexchanglaw.com\/index.php\/wp-json\/wp\/v2\/media?parent=1528"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/alexchanglaw.com\/index.php\/wp-json\/wp\/v2\/categories?post=1528"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/alexchanglaw.com\/index.php\/wp-json\/wp\/v2\/tags?post=1528"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}