Business rescue options under Companies Act. [Newspaper] (2020)
Abstract
THE coronavirus pandemic and the Movement Control Order have exposed companies and businesses to considerable risks of financial distress and insolvency. This article is written to keep companies and business owners informed of the corporate rescue and restructuring options under the Companies Act 2016 (CA 2016).
First, the Scheme of Arrangement (SOA) — Section 366 of CA 2016. SOA is a powerful, flexible and court-supervised mechanism for debt restructuring, reconstruction and amalgamation of companies, including any transfer of property or liabilities between them.
A company may apply to the court for a SOA by first seeking a court-convened creditors’ meeting. From experience, the court will order such a meeting to be convened only if a viable proposed scheme is presented. Lawyers have to work closely with scheme advisers in order to help companies achieve that.
| Item Type: | Newspaper |
|---|---|
| Keywords: | Corporate insolvensy, Companies act, Court’s sanction, Moratorium, Rescue mechanisms |
| Taxonomy: | By Subject > Law > Insolvency By Subject > Law > Insolvency Law |
| Local Content Hub: | Subjects > Law |
| Depositing User: | Muhammad Azrul Ayob |
| Date Deposited: | 25 Oct 2021 07:13 |
| Last Modified: | 25 Oct 2021 07:13 |
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