Announcement: Extension of Winding Up Moratorium Period to 31st March 2021
Dear Valued Clients,
Malaysia’s winding up moratorium period came to an end on 31st December 2020. Back in April 2020, two winding up protection reliefs were announced.
The first protection was to increase the value of indebtedness under Section 466 of the Companies Act 2016 from RM10,000 to RM50,000 until 31st December 2020. This protection was put in place to reduce taking winding up action against companies. While the debt threshold was meant to default back to RM10, 000 in January, RM50,000 minimum threshold is now maintained up to 31st March 2021.
Secondly, companies were given a six-month grace period, instead of the standard 21-days, to respond to a notice of demand. This protection has now been reverted to the existing 21-day demand period set out in the Companies Act 2016.
In summary, creditors now can proceed to commence winding-up proceedings within 21 days, and the debt threshold maintains at RM50,000 up until 31st March 2021, as of now. Should there be any changes or updates to the winding-up timeline, we will continue to keep you informed and updated. Please feel free to reach out to us if you need further clarification.
Thank you and stay safe,
Nur Farhana Binti Abdul Karim