Malaysia legislation
Section 20
Section 20
(a)
the commencement or continuation of any individual action or proceedings in relation to the property, rights, obligations or liabilities of the debtor shall be stayed;
(b)
any execution against the property of the debtor shall be stayed; and
(c)
any right to transfer, encumber or otherwise dispose of any property of the debtor shall be suspended.
(2)
The stay and suspension referred to in subsection (1) shall—
(a)
be of the same scope and have the same effect as if the debtor had been made the subject of a winding up order under the Companies Act 2016 or the Labuan Companies
Act 1990; and
(b)
be subject to the same powers of the Court and the same prohibitions, limitations, exceptions and conditions as would apply under the laws of Malaysia in such a case, and the provision of subsection (1) shall be interpreted accordingly.
(3)
Without prejudice to subsection (2), the stay and suspension referred to in subsection (1) shall not affect the rights—
(a)
of any person to take any steps to enforce any security over the property of the debtor;
Act 877
(b)
of any person to take any steps to repossess goods in the possession of the debtor under a hire-purchase agreement as defined in section 2 of the Hire-Purchase Act 1967
[Act 212];
(c)
of any person exercisable under, by virtue of, or in connection with any provision of the written laws as specified in Part II of the Schedule; or
(d)
of a creditor to set off his claim against a claim of the debtor, being the rights which would have been exercisable if the debtor had been made the subject of a winding up order under the Companies Act 2016 or the Labuan Companies Act 1990.
(4)
Paragraph (1)(a) shall not affect the rights—
(a)
to commence individual actions or proceedings to the extent necessary to preserve a claim against the debtor;
or
(b)
to commence or continue any criminal proceedings, or any action or proceedings by any person or body having regulatory, supervisory, investigative or enforcement functions of a public nature where such action or proceedings is brought in the exercise of those functions.
(5)
Subsection (1) shall not affect the rights of any person to apply for, or otherwise initiate, the commencement of proceedings under Malaysian insolvency law, or the rights to file a claim in such proceedings.
(6)
In addition to and without prejudice to the powers of the
Court under subsection (2), the Court may, on the application of the foreign representative or any person affected by the stay and suspension referred to in subsection (1), or on its own motion, modify or terminate such stay and suspension or any part of it, either wholly or for a limited period, on such conditions as the
Court thinks fit.
(7)
In this section, “security” means any charge, lien, mortgage, pledge, hypothecation or any other security recognized by law including any security accepted in relation to matters of admiralty in Malaysia.
Cross-Border Insolvency 21
Relief that may be granted upon recognition of foreign proceedings