In forceUpdated to 30 Jan 2026Read it in Bahasa Malaysia

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Cross-Border Insolvency Act 2026 · Updated to 30 Jan 2026 · Part III · Recognition of Foreign Proceedings and Relief

21. Relief that may be granted upon recognition of foreign proceedings

(1)

Upon recognition of foreign proceedings, whether as foreign main proceedings or foreign non-main proceedings, where necessary to protect the property of the debtor or the interests of the creditors, the Court may, on the application of the foreign representative, grant any appropriate relief as the Court thinks fit, including an order—

(a)

staying the commencement of or continuation of any individual action or proceedings concerning the property, rights, obligations or liabilities of the debtor, to the extent such action or proceedings have not been stayed under paragraph 20(1)(a);

(b)

staying any execution against the property of the debtor, to the extent such execution has not been stayed under paragraph 20(1)(b);

(c)

suspending the rights to transfer, encumber or otherwise dispose of any property of the debtor, to the extent such right has not been suspended under paragraph 20(1)(c);

(d)

for the examination of witnesses, the taking of evidence or the delivery or production of information concerning the property, affairs, rights, obligations or liabilities of the debtor;

(e)

entrusting the administration or realization of the whole or any part of the property of the debtor located in Malaysia to the foreign representative or such other person as the

Court may appoint, for the purpose of protecting and preserving the value of such property;

(f)

extending any relief granted under subsection 19(1); and

(g)

that may be available to a Malaysian insolvency office-holder under the laws of Malaysia.

(2)

If relief is granted under paragraph (1)(e) to a foreign representative or such other person as the Court may appoint, the Court may, on the application of the foreign representative or such other person as the Court may appoint, where the distribution applied for involves the transfer of any property of the debtor to any person outside Malaysia, the foreign representative or such other person as the Court may appoint shall first obtain leave of the Court, and such leave shall only be granted if the Court is satisfied that the interests of creditors in Malaysia are adequately protected.

(3)

For the purposes of subsection (2), before making any order for the transfer of any property of the debtor to any person outside

Malaysia, the Court shall ensure that the foreign representative or such other person as the Court may appoint has certified or provided a guarantee to the Court that the claim of creditors in Malaysia, whose debts do not exceed the threshold as prescribed by the Minister by order published in the Gazette, have been met and satisfied from the property applied to be so transferred.

(4)

In granting relief under subsection (1) to a foreign representative of foreign non-main proceedings, the Court shall be satisfied that such relief relates to—

(a)

property which, under the laws of Malaysia, should be administered in the foreign non-main proceedings; or

(b)

information required in the foreign non-main proceedings.

(5)

Nothing in paragraphs (1)(a), (b), (c), (e) and (g), and subsection (2) shall affect the rights 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.

(6)

For the purposes of this section, the Minister, after consultation with the Minister of Finance and the Minister charged with the responsibility for companies, may amend the threshold referred to in subsection (3), by order published in the Gazette.

Cross-Border Insolvency 23

Terms defined in s 2

Court
Defined · s 2
“Court” means the Court as referred to in section 5;
Open s 2
debtor
Defined · s 2
“debtor” means— (a) a corporation as defined in section 3 of the Companies Act 2016 but does not include limited liability partnership and foreign limited liability partnership; or (b) a corporation as defined in section 2 of the Labuan Companies Act 1990;
Open s 2
foreign main proceedings
Defined · s 2
“foreign main proceedings” means foreign proceedings taking place in a foreign State where the debtor has its centre of main interests;
Open s 2
foreign non-main proceedings
Defined · s 2
“foreign non-main proceedings” means foreign proceedings other than foreign main proceedings taking place in a foreign State where a debtor has an establishment;
Open s 2
foreign proceedings
Defined · s 2
“foreign proceedings” means collective judicial or administrative proceedings in a foreign State, including interim proceedings, under the law relating to insolvency in which proceedings the property and affairs of the debtor are subject to control or supervision by a foreign court, for the purposes of reorganization or liquidation;
Open s 2
foreign representative
Defined · s 2
“foreign representative” means a person or body appointed, including a person or body appointed on an interim basis, and authorized in foreign proceedings to administer the reorganization or liquidation of a debtor’s property or affairs or to act as a representative of the foreign proceedings.
Open s 2
Malaysian insolvency office-holder
Defined · s 2
“Malaysian insolvency office-holder” means— (a) the Official Receiver as defined in section 2 of the Companies Act 2016; (b) a person appointed under the Companies Act 2016 to act in any of the following capacities: (i) liquidator or interim liquidator, whether in a compulsory or voluntary winding up; (ii) judicial manager or interim judicial manager in judicial management; (iii) nominee or supervisor of a corporate voluntary arrangement; or (iv) representative of a scheme of compromise or arrangement; (c) a person approved under the Labuan Companies Act 1990 as an approved liquidator; (d) any other person appointed by the Court under subsection 6(2) to act in a foreign State on behalf of any proceedings; or (e) any other such person or body recognized under any written law in Malaysia in a collective judicial or administrative proceedings in Malaysia, including interim proceedings, under the law relating to insolvency in which proceedings the property and affairs of the debtor are subject to control or supervision by the Court, for the purposes of reorganization or liquidation;
Open s 2
Minister
Defined · s 2
“Minister” means the Minister charged with the responsibility for law; Cross-Border Insolvency 9
Open s 2

Report

Read on from s 22

Part IV

Cooperation with Foreign Courts and Foreign Representatives

Read on from Part IV

Part V

Concurrent Proceedings

Read on from Part V

Part VI

General

Read on from Part VI