/Metadata 14 0 R/Pages 126 0 R/StructTreeRoot 23 0 R/Type/Catalog>> endobj 130 0 obj <>/MediaBox[0 0 594.96 842.04]/Parent 126 0 R/Resources<>/Font<>/ProcSet[/PDF/Text/ImageC]/XObject<>>>/Rotate 0/StructParents 0/Tabs/S/Type/Page>> endobj 131 0 obj <>stream endstream endobj 109 0 obj <> endobj 110 0 obj <> endobj 111 0 obj <>stream It is also a restatement of existing rules. 0000005546 00000 n Chapter 6 specifically deals with Business Rescue, compromising with companies’ creditors. 0000267945 00000 n 1. �w �� endstream endobj 106 0 obj <> endobj 107 0 obj <>stream �})N�G���p�Np�#G�K�Q�����sMp�Q����0�~�P�쟀&��#�,}��Oʶ�KjTto�z,�M����_ ��|I 0000007626 00000 n Corporate Rescue Mechanisms in Malaysia: A 10-Minute Digest ... including the use of corporate rescue mechanisms. THE REFORM INITIATIVE The 4 year review by CLRC CorporateLaw Reform Initiative A proposalto repeal the CompaniesAct 1965 TheproposedCompaniesBillis drafted based on the 4 year review conducted by CLRC &AICC Public Consultation on the draft Companies Billwas … Section 366 and Section 368 of the Companies Act 2016 are statutory mechanism that provides relief for Companies to propose a compromise with its creditors and to strike a compromise in lieu of facing immediate doom of being wound up. #|I�΅� )jY��A�����E�q0#�2v�+1,�M˷�0��Ύ��6H��ջ>�:N. CORPORATE RESCUE MECHANISM. ��a�w?cRb3%�h���m_��*���{�e6��\2R$�ǠeŒ�����>���aҪ\,;�3�ro[���Ѱ;� z�M�����h�aR���H��F_��5����R. The programmes will provide a learning platform for participants to understand the way the new Act shall operate for a private and public company. 71 of 2008 (“the Act”) became official in April 2009 and became effective on 1 May 2011. The act rewrote South African company law. A Study of Corporate Governance under the Companies Act , 2013 1S.S. 0000011187 00000 n 0000224414 00000 n 0000224861 00000 n 0000004618 00000 n %%EOF h�bbd```b``�"k��G �u2�d���`�m ��,r̖���@$�XD ���d��$�ʂA"�H} )�K�H��~��t?Hh� ���_ �D] The coronavirus pandemic gives rise to the major risk of companies and small businesses going insolvent. H��Wmo�0�)��>:�bl���T!��M�V��H���b��Ԇ�����BRH&�&�����sw&�� ��`T(H��6��C0�q�apM�Q���j�,�Y�P�[7?\��"����� o�Ye�� o��B�;�n�\�So��~��i| �_Ȇ2�1Fs$�ڔ&��� CA. [%�)�LK��$��b�3���.��6�����Ղ��kqǪ (.��=��]�é�7eB\#$'�! Key reforms include the introduction of: two new corporate rescue mechanisms: judicial management and corporate voluntary arrangement; and; additional controls on court sanctioned schemes of arrangement to make this … 0000003492 00000 n This article will provide an overview of the CA 2016. 0000211229 00000 n 0000151747 00000 n 0000210816 00000 n 0000224656 00000 n h�bbbd`b``Ŵ� �� US. This text has a comprehensive coverage of the major changes introduced by the new Companies Act 2016, including the following: no par value share system; one-person companies; unlimited capacity; optional constitution; optional objects clause; general abo . endstream endobj 104 0 obj <> endobj 105 0 obj <>stream An Act to provide for the registration, administration and dissolution of companies and corporations and to provide for related matters. India had the Companies Act, 1956, Sick Industrial Companies (Special Provisions) Act, 1985 which has undergone a complete overhaul in … The concept of corporate rescue lays emphasis on corporate sustainability than liquidation. �C�9O0+�c���QAA�Z�����zY�x�0.64��q\� =�U��F��f��C�Y�ø5�[��ȏ�B!�)I �d�ۛ��DA�_��� �Kaz-�m�fh���*5�$G7?>�à��?�.)�&����"��. The company law landscape in Malaysia has witnessed a significant change in its insolvency law with the adoption of two new corporate rescue mechanisms, the corporate voluntary arrangement and judicial management under the Companies Act 2016 (CA 2016), which has repealed the Companies Act 1965 (CA 1965). Siva Shree and 2M . 0000210843 00000 n enacts fundamentally significant changes to company law in Malaysia. %PDF-1.5 %���� Both the corporate voluntary arrangement and judicial management, together with the Com-panies (Corporate Rescue Mechanism) Rules 2018 (“Rules”), came into force earlier this year on 1 March 2018 with the gazetting of notice P.U. 0000003030 00000 n 0000224888 00000 n 0000225184 00000 n endstream endobj 157 0 obj <>/Filter/FlateDecode/Index[5 89]/Length 22/Size 94/Type/XRef/W[1 1 1]>>stream Neither has the rehabilitation of the debtor company as its objective. 0000267304 00000 n 0000008317 00000 n 3 Insolvency Act 1986 (1986 c. 45) (“IA 1986”). 0000011239 00000 n )�T&��Npq;�!&�k�����lC)�f�s'�u%���^�fj*�����M����$q�����ܣr��}���؃ׄ땽�laðL�����+���J䥾��5j��7Hh�W�V˓�ݤZWo�ܝW��>vP2NEr�hIu�H��2��@�$�j����޹I���*�-�C�$�-�g��U�̃sF�V���t#�,�2H�k��a|w:��$�53}T9�]9ov��b\'�_ũ�{ľ�� The . 0000000016 00000 n 0000267972 00000 n AU. 0000006508 00000 n endstream endobj 95 0 obj <>/Metadata 3 0 R/Pages 2 0 R/StructTreeRoot 5 0 R/Type/Catalog/ViewerPreferences 96 0 R>> endobj 96 0 obj <> endobj 97 0 obj <>/MediaBox[0 0 595.32 841.92]/Parent 2 0 R/Resources<>/Font<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI]>>/Rotate 0/StructParents 0/Tabs/S/Type/Page>> endobj 98 0 obj <> endobj 99 0 obj <> endobj 100 0 obj <> endobj 101 0 obj <> endobj 102 0 obj <> endobj 103 0 obj <>stream FR. COMPANIES ACT 2016 By: Nor Azimah Abdul Aziz Deputy CEO (Regulatory & Enforcement) Companies Commission of Malaysia. 128 0 obj <> endobj Also enforced on January 31 was the Companies Regulations 2017 to support the implementation of the Companies Act. 0000152347 00000 n Overview of the insolvency reforms made by the Companies Act 2016 . 26 May 2016 . 4 F HI Cassim … et al Contemporary Company Law 2 ed (2012) 861. 0000021878 00000 n This provision allows … 0000005404 00000 n CORPORATE RESCUE MECHANISM. H���oo�0��G�w�����KbOU�ݴ�T�@���� �l��*�iqxY�#ϝ�'�|��I| Judicial … The Insolvency Act 2016: Towards Embracing Corporate Rescue Culture in Malawi. Xea�� �ap����)XjLaP�SEo�s�.F ���Y''����x:�4�o�dy|�-�t� The CA 2016 is applicable for body corporates while the IA 1967 is for individuals, sole proprietors or partners in a partnership. judicial management schemes and corporate voluntary arrangements. The corporate rescue mechanism under Division 8 of Part III of the Companies Act 2016 came into force on 1 March 2018, together with the Companies (Corporate Rescue Mechanism) Rules 2018. In the past fifteen years corporate insolvency law in the UK has been radically reshaped mainly by means of the Enterprise Act. On the Indian front, the absence of a single code prescribing mechanisms to deal with corporate insolvency and corporate rescue and the omnipresence of a web of legislations on the same, the efficiency and efficacy of these apparatus gets compromised. 'Lp��Su>�og��ͺ] BW�o���[�up K�/�W�z�,J4'�g�C3�լ�r"c�(M!�RE����H~[��u��zt6��t��c|�U��w����m��ws�h���2�nf��VV��W��|�V�꨹y�vW�Et��'��Es����~5��'��2$���#e�i�hq�����3�U�ĕ���t�,���.�/�/#eu6�?��������C JyC��v��+G�9�uw3����1`�qpP��J���H\�cR���K�����I�ڄ���d�Ԕ����Ɇ�TLV�LN׆I���K����`T��f(E�-))a؃¤�I)[[����q!i7�X�u+��y�j�]M�&"��Jd\����&��)��>�w��=�>F�u��D*{���`#�k�*J6�Y�> -��X��,N�����|V@r���� UNDER THE COMPANIES ACT 2016. 0000267784 00000 n The act rewrote South African company law. 0 <<1F62337B4B34644DBA2152F463D15B33>]/Prev 273125/XRefStm 1882>> Companies Act 61 of 1973 (“the 1973 Act”). It introduces new concepts in relation to incorporation, capital allocation decisions secured creditors’ rights, reporting requirements, corporate governance and rescue mechanisms. Application of Rules of Court 2012 2. Discusses the impact of the corporate rescue regime introduced by the Enterprise Act 2002 and the role of the "turnaround specialists" involved at the pre insolvency monitoring stage. In an environment where cash flow and liquidity challenges will likely threaten most enterprises, it seems almost inevitable that some will seek the protections afforded by the corporate rescue mechanisms under the Companies Act 2016 (“Act”) namely, corporate voluntary arrangement and judicial management. 0000022121 00000 n They range from the new corporate rescue mechanisms in the Companies Act 2016 (CA 2016) for companies and the voluntary arrangement under the Insolvency Act 1967 (IA 1967) for sole proprietors. Companies Act 2016 An Overview of the programme The objective of the programme is to highlight the provisions of the new Companies Act that will impact many practical aspects on compliances, conduct and proceedings of directors, the company secretaries and way of administering the corporate affairs of a company. Short title and commencement. H��W�k�07�У3��oY�����h`�vY�6�6�����~'Y���e��������t��S�����x�g��6 The two corporate rescue mechanisms under Division 8 are judicial management and corporate … 0000002196 00000 n 'Companies Act 2016: The New Dynamics of Company Law in Malaysia' is a practical guide on the newly enacted Companies Act 2016. �2M��(”��q�*n� �D�U[��"f&Lf����>��+�� �NhI8C,���k���O>�zO�_��8��8H��᮲| ���PdS���J��_嶍�J�D0�������Eh��ڟko #�u��>]y0��V!yDQ$# According to reports, the major changes are in relation to the incorporation procedure of companies , the omission of authorised share capital and par value for shares, as well as a corporate rescue mechanism for companies. The report also indicated that South African trade unions are not using business rescue to place financially distressed companies into the business rescue process, thus losing the opportunity to save jobs. By the gazetting of the notice P.U. On 1 March 2018, the Companies Commission of Malaysia (SSM) has enforced Division 8 Part III of the CA 2016 as part of the insolvency framework to help companies in financial difficulties to be rehabilitated … 4/2018. Recently, the environment in which corporate insolvencies are resolved has changed. (1) This Act may be cited as the Companies Act 2016. The Companies Act 2016 (“the Act”) was brought into force on 31 January 2017. View 5 INSOLVENCY CORPORATE RESCUE MECHANISMS-1.pptx from ACCOUNTING 56 at Northern University of Malaysia. %%EOF 0000151251 00000 n 61 of 1973 (“the old Act”). This process is increasingly coming under challenge from an alternative model that addresses the fact that administration can be a lengthy and expensive process. HK. )��(����� �;�^�()�0���70��v6U�~M�E1�sֻ�9C�֎�wF��B�?���� }�{���g�y�m�w�*�\x٥�� ˴įī/Ɔu-���,;9}��Z��!%���}� 0000099559 00000 n With this, companies have a mechanism to lodge documents with the Companies F����o��rR_���GXѺ�9[�sd�L ����ί�d�9������NA�A�t�XջO�����=0c�_D�5Y������%���[7��G����n�;v(I�D��V];!4l�Z����u�i+X�i+����K,1T�7�ɬ�y�궆*� COMPANIES ACT 2016. 0000210389 00000 n Prior to CA 2016, the procedure often utilised by financially distressed companies in Malaysia was the scheme of compromise or arrangement under section 176 of the former Companies Act, 1965. The advent of the business rescue regime in the 2008 Act, which came into effect on 1 May 2011, introduced a long overdue system of corporate rescue in line with international standards, and apposite 4to the modern day demands of the South African economy. 71 of 2008 (“the Act”) became official in April 2009 and became effective on 1 May 2011. On 1 March 2018, Division 8 of Part III of the Companies Act 2016 (“CA 2016”) came into operation; well ahead of the earlier indicated time line of ‘the last quarter of 2018’. SG. 0000022144 00000 n UNDER THE COMPANIES ACT 2016. With these changes under the Act, the corporate landscape has seen a host of changes. ��0��v6�ZM�0�L�OY9! (B) 106/2018. trailer endstream endobj 108 0 obj <>stream 0000210662 00000 n The Companies Act 2016 (CA 2016) repealed the Companies Act 1965 (CA 1965) and changed the landscape of company law in Malaysia. corporate rescue follows a formal mechanism known as administration. 0000003199 00000 n One of the innovations introduced by the Companies Act, 71 of 2008 (“Companies Act”) is the mechanism of business rescue proceedings in South Africa. (2) Form 4 of the Companies (Corporate Rescue Mechanism) Rules 2018. 71 of 2008 (the Act) introduces business rescue to the South African business landscape. The . The new Companies Act No. Companies Act 2016 [Act 777], the Rules Committee makes the following rules: PART I PRELIMINARY Citation and commencement 1. 0000002857 00000 n �*���DJ����(��/Z�w rp�x��ЪX��V�Y��U�惋I�@7%��=xi��"N�g�t���[X��R]ʆ�v ���L ��c"zH����y2�]��T ���������P�+%#�N{�(M,f/�D�,�3 �tLdX�;��m2�5L���U�,$1�{5��� չߙ����ZU�=���[6������قh�m��(��\�`����@�lj��ct|:Ahxv7۠�������l�y��B�rS�~�Fh|4Ao�\�ڒcn�K9���-���&������v+�"*R�1�"R���2�uL� CORPORATE RESCUE AND DEBT RESTRUCTURING EXERCISE: SCHEME OF ARRANGEMENT PURSUANT TO SECTION 366 COMPANIES ACT 2016 . 0000011808 00000 n THE NEW COMPANIES ACT 2016 How Judicial Management and Corporate Voluntary Arrangement Affect Recovery of Your Million Dollar Debts as an Unsecured Creditor 20 APRIL 2017 (THURSDAY), PULLMAN KUALA LUMPUR BANGSAR PROGRAMME OUTLINE 1. fL���Â]���d�ZZ�q�`���� �B�l0 ACT 777 . Business rescue clearly has potential benefits to employees. � ��{,�}�Zea�X���Il�Ы�9���R{3�S. Companies Act 2016. This corporate rescue mechanism aids the company from being pressured by aggressive creditors. 61 of 1973 (“the old Act”). The Companies Act 2016 is anticipated to come into effect in late 2017. The other provisions affecting insolvency law and practice in the Companies Act 2016 codify certain established common law … Under the Companies Act 1965 (“Old Act”), a memorandum and articles of association (“M&A”) is required for a company to be incorporated. 0000225416 00000 n 61 of 1973. (B) 106/2018. 0 In this article, I set out the restructuring and rescue options for businesses in Malaysia. 0000004493 00000 n We have previously discussed the insolvency law policy and procedure, touching briefly … 0000210148 00000 n They range from the new corporate rescue mechanisms in the Companies Act 2016 (CA 2016) for companies and the voluntary arrangement under the Insolvency Act 1967 (IA 1967) for sole proprietors. regime to ascertain its worthiness as a corporate rescue mechanism. MY. THE NEW COMPANIES ACT 2016 How Judicial Management and Corporate Voluntary Arrangement Affect Recovery of Your Million Dollar Debts as an Unsecured Creditor 20 APRIL 2017 (THURSDAY), PULLMAN KUALA LUMPUR BANGSAR PROGRAMME OUTLINE 1. Companies Act 2016 . Subsequently, on 1 March 2018, the corporate rescue mechanism provisions were also brought into force along with the new Companies (Corporate Rescue Mechanism) Rules 2018. UK. One major highlight of the new Act would be the corporate rescue mechanism involving Corporate Voluntary Arrangement and Judicial Management. A Study of Corporate Governance under the Companies Act , 2013 1S.S. their wealth. Corporate Rescue Mechanisms under Division 8 of the Companies Act 2016 comes into operation . When it enters into effect on a date yet to be determined, the new Malaysian Companies Act 2016 will make significant changes to Malaysia’s corporate insolvency regime. h�b``�e``/c```��`@,`�1���Q�I���8��8X&0�a�`��`̰� �� '�|n1�a\���P��x��� ���=C���� {�~0�g(oPb`h����R��pC.�]�@�wÞ4��� � l���06t`p��@r#��?0����Mn�(�� �A)Z Corporate Rescue Mechanisms under Division 8 of the Companies Act 2016 comes into operation . Prior to the introduction of the new Companies Act, South Africa made use of the judicial management procedure in terms of the Companies Act No. startxref H��V]k�0}7�?�G{,��eA)�i7:���������5���a�~�,%UJ�h��,K:GW����;X���$M� h�%L�ӄ , �?J�$cHs�ܧ ��|J���0��&gf�/ig����j�����xt~ 0000151970 00000 n [ ] ENACTED by the Parliament of Malaysia as follows: PART I. 0000150743 00000 n (B) 106/2018 dated 27 February 2018, the corporate rescue mechanism under Division 8 Part III of the Companies Act 2016 has come into force on 1 March 2018. 3 Judicial management was the predecessor to business rescue, contained in sections 427 – 440 of the of the 1973 Act. COMPANIES ACT 2016 By: Nor Azimah Abdul Aziz Deputy CEO (Regulatory & Enforcement) Companies Commission of Malaysia. Management (JM) under Division 8 Part III of the Companies Act 2016 (CA 2016), the Companies (Corporate Rescue Mechanism) Rules 2018 and Practice Directive No. 0000009175 00000 n 0000152277 00000 n CORPORATE VOLUNTARY ARRANGEMENT (“CVA”) Introduction The provisions… /�����`�=?>����6[ lE��AZ F��i m�S�@׭��6�O�x8P� Y�S*C!�yB�v6��rÛR[�C��مO�� ֏�x��^�O�e���~���]���6 ��-_@����b�b��h��gN�r�����Yu Z���qjfAj���2I�03�W��)�q/ze&���qb#�VM�q�Y{��΅?��a��p�-�##��v�JR�P�!�E΄��d�"_���:���{ �b�R�̛� �4}4 h�b``�b``�b`a`��ed@ AfV�8����;�B,���$@$�f�����X��1�ѵ��A�!6����O,G�6nu��@��&��e�t/rh)g�S�Y���٫���ނi� �8� The corporate rescue mechanism allows for financially distressed companies to consider two options: (1) corporate voluntary arrangement and (2) judicial management. ZA. 0000002690 00000 n 158 0 obj <>stream Under existing Malaysian insolvency laws, the usual outcome in the event of corporate insolvency is receivership or liquidation. OUT WITH THE OLD, IN WITH THE NEW INTRODUCTION TO COMPANIES ACT 2016 … The corporate voluntary arrangement is conceptually similar to the scheme of arrangement mechanism under the Old Act, where the existing management of a financially distressed company remains in control during the restructuring. Companies Act 2016. 0000007324 00000 n judicial management schemes and corporate voluntary arrangements. 94 0 obj <> endobj The coronavirus pandemic gives rise to the major risk of companies and small businesses going insolvent. ��"W����_��z88� 附 2��p@�3���Ȕ��;��p����b�;�"�¾u>|dwl��c��'R�o��xbل���w��-~^�P*-�z�0��W�S��M�S�΂^���i���o���^�؜�?�?����ȳG�zAX�Zhg���n��׽9D�~�dJ+���s�v���"}�n�~��atQ �S�d���b���}�^ ����)i�=���T4�oL�������?X�h!=x푛�*.1�/x�$��g'\i�q���`� %�R�P1�1�@e�/y�3�J-x�W[%����Ձh�k��"/����{�I#L���F��"�.s-�->j�h�%�J��̘�s�� �=b�N�MA��a�(5.�3%r����� corporate rescue mechanism such as corporate voluntary arrangement and judicial management. 0000003329 00000 n to liquidation, this chapter focuses on the corporate rescue mechanisms available under the Singapore Companies Act to rehabilitate an insolvent company and achieve a better realisation of assets than possible in a liquidation. 0000011291 00000 n Contact Centre 1 800 88 8856 Customer Support Country/Region . H��W�n�F}���ݠ\r�K�0`3�� �K@Q�y`JI�D#��wf��nM��MՀI�uΞ�9�LO��r^��pt���uy{W}���ls�)�}��ҫr�\��r�N�����sU~����p���߇�Ld�����ͭ� 26 May 2016 . Companies Act 2016: Transforming Malaysia’s Corporate Landscape The Companies Act 2016 (Act 777) (“CA 2016”) came into force on 31 January 2017. (1) These rules may be cited as the Companies (Corporate Rescue Mechanism) Rules 2018. corporate rescue mechanism in the malaysian companies act 2016 prior to the existence of the companies act 2016, the companies act 1965 introduced method by Previously, the insolvency laws under the CA 1965 were based on the … �ٷ�Bv� 8R-�(��O�)�y���Yuqw�V����+^?Z6�b�i߽kW�I?\/�կ�t�~��=������9�_ Restructuring of companies in financial distress is on the increase globally. 149 0 obj <>/Filter/FlateDecode/ID[<903ECA0A1731D440A201B1F421547DB0><8507E29269743443A15065100294BFCD>]/Index[128 46]/Info 127 0 R/Length 110/Prev 631717/Root 129 0 R/Size 174/Type/XRef/W[1 3 1]>>stream The New Companies Act 2016 came into force at the beginning of this year which brought together with it many new provisions. 0000224690 00000 n Dr Boniface Chimpango, Principal Solicitor, Crown & Law Solicitors, Manchester, UK Introduction The Insolvency Act 2016 (hereinafter referred to as 'the new Insolvency Act') came into force on 20 May 2016 as part of the wider business law reform in Malawi. ... effective forms of corporate rescue can play their part in recovering from the financial crisis by helping to create an environment where business failure and associated unemployment can be mitigated. This was not a very successful mechanism for distressed companies in South Africa as the Old Act lacked formalised focus on business rescue and mainly %PDF-1.7 %���� This was not a very successful mechanism for distressed companies in South Africa as the Old Act lacked formalised focus on business rescue and mainly focused on terminating the companies through a liquidation process. Q�����m6.IL+�;����j3�P�Ȁ1b�Yfs�rn�k�mf3���r��6�Q�h0���&=5w�?��'5�d���sֲ���(�5�u������b ��I� 0000002052 00000 n The new Act will have a tremendous impact on the corporate legal framework and this book will serve as an authoritative text to allow readers to navigate into this new corporate landscape. 0000151410 00000 n xref The CA 2016 reformed almost all aspects of company law in Malaysia. *B���s׭�6u��uE,u�J(�&�~��6�)7�͌e��V-뮊6+��ƹ��8��~ڷ�Jl���e{����F��3ק�*��|fv0���-�!Ⱥ5wٻ��6�Q WI�����$%!�G��$j��|�#Y�F"����̇�3+ ê#,���!�!r/�` � 0000099582 00000 n We have previously discussed the insolvency law policy and procedure, touching briefly … M/�b�4"�j� �� IN. Corporate Rescue Mechanism under the Companies Act 2016 Tay & Partners Asia-Pacific, Malaysia August 29 2018 Both the corporate voluntary arrangement and … Under the Companies Act 2016, these mechanisms are broadly referred to as the Scheme of Arrangement (SOA), Corporate Voluntary Arrangement (CVA) and Judicial Management (JM). Implications Beginning 31 January 2017, Malaysian companies will need to comply with the Companies Act 2016, including the requirements under the Companies Regulations 2017 which mainly deals with e-lodgment issues and fees payable to required applications and filings. This modern Business Rescue regime replaced the Companies Act No. It introduces new concepts in relation to incorporation, capital allocation decisions secured creditors’ rights, reporting requirements, corporate governance and rescue mechanisms. 0000010268 00000 n ��7yFЕm>��yq;(Uq9(�(�my��+;��n��,fv懛�u�/;oiTq3(��;Lx��1���:�E����$5�;K2��y|G�Oyvg��g?AuL쯪4�J#1g���y��pα��J����0�����Q)�+&��#����SA�p;㦪Q��׌J�T�G+T�⸈�Y��&)=�d�C�C�$�G � ��0�"����s'��*Dn_� In line with this trend, Chapter 6 of the new Companies Act, No. The statutory moratoriums. It incorporates many On 1 March 2018, Division 8 of Part III of the Companies Act 2016 (“CA 2016”) came into operation; well ahead of the earlier indicated time line of ‘the last quarter of 2018’. 0000211299 00000 n Chapter 6 specifically deals with Business Rescue, compromising with companies’ creditors. NOVEMBER 2016 Going under business rescue is proving to be an increasingly attractive option for South African companies that are in financial distress since the advent of Chapter 6 of the Companies Act, 71 of 2008 (“the Act”). enacts fundamentally significant changes to company law in Malaysia. The Companies Act 2016 addresses this problem by limiting the maximum duration for a restraining order to 3 months with extensions of up to a further 6 months only. 173 0 obj <>stream 94 65 Besides, the idea of Corporate Social Responsibility holds an indispensable position in the Act. ����~t����}1\Q��,~�j��E��I���]�������-~�a���gܜ�p�=�*�whZ�]f$͛xǩ�H���Rq�Խܑ��mI1[��kE|����P`%-Z��lG͟���� Z>�� The new regime introduces two new corporate rehabilitation mechanisms for financially distressed companies, i.e. One of the innovations introduced by the Companies Act, 71 of 2008 (“Companies Act”) is the mechanism of business rescue proceedings in South Africa. The Companies Act 2016 also allows the Court to appoint an approved liquidator to assess the viability of the scheme of arrangement proposed and prepare a report for submission to the meeting of creditors and members. 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