Cross-Border Insolvency Act 2026 · Updated to 30 Jan 2026 · Part III · Recognition of Foreign Proceedings and Relief
23. Actions to avoid acts detrimental to creditors
Feedback & supportSubject to subsections (6) and (9), upon recognition of foreign proceedings, a foreign representative shall have locus standi to apply to the Court for an order under, or in connection with sections 352, 366, 426, 472, 528, 529, 530, 531, 540 and 541
foreign proceedings
“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;
of the Companies Act 2016 and section 20 of the Labuan Companies
Act 1990.
Where a foreign representative makes such an application under subsection (1), the provisions of the Companies Act 2016
foreign representative
“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.
and the Labuan Companies Act 1990 as referred to in subsection (1)
shall apply—
regardless of whether the debtor is being wound up, is placed under judicial management, or is undergoing a scheme of compromise or arrangement under the
Companies Act 2016 or the Labuan Companies Act 1990, as the case may be; and
subject to the modifications specified in subsection (3).
For the purposes of this section, the applicable modifications are as follows:
for the purposes of section 366 of the Companies Act 2016, the date which corresponds with the commencement of a scheme of compromise or arrangement shall be the date of the opening of the relevant foreign proceedings;
for the purposes of section 426 of the Companies Act 2016, the date which corresponds with the presentation of an application for judicial management shall be the date of the opening of the relevant foreign proceedings;
for the purposes of section 472 of the Companies
Act 2016, the date which corresponds with the presentation of a winding up petition shall be the date of the opening of the relevant foreign proceedings;
for the purposes of sections 528, 529, 530, 531, 540
and 541 of the Companies Act 2016, the date which corresponds with the presentation of a winding up petition in the case of winding up by Court or passing of the resolution in the case of voluntary winding up, shall be the date of the opening of the relevant foreign proceedings; and
for the purposes of section 20 of the Labuan Companies
Act 1990, the date which corresponds with the date the ultra vires transaction is sought to be restrained shall be the date of the opening of the relevant foreign proceedings.
For the purposes of subsection (3), the date of the opening of the relevant foreign proceedings shall be determined in accordance with the law of the foreign State where the foreign proceedings take place, including any rule of law under which the foreign proceedings are deemed to have been opened at an earlier date.
Where the foreign proceedings are foreign non-main proceedings, the Court shall be satisfied that the application under this section relates to property which, under the laws of Malaysia, should be administered in the foreign non-main proceedings.
foreign non-main proceedings
“foreign non-main proceedings” means foreign proceedings other than foreign main proceedings taking place in a foreign State where a debtor has an establishment;
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Where, at the time the application is filed, proceedings in respect of the debtor are pending under Malaysian insolvency law, the foreign representative shall not make an application under this section without the leave of the Court.
debtor
“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;
Upon granting an order in relation to the application under this section, the Court may give such directions regarding the distribution of any proceeds of the claim by the foreign representative, as it thinks fit, to ensure that the interests of creditors in Malaysia are adequately protected.
Nothing in this section shall affect the rights of a Malaysian insolvency office-holder to make any application under, or in connection with, any of the provisions specified in subsection (1).
Malaysian insolvency office-holder
“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;
Subsection (1) shall not apply in respect of any preference given, floating charge created, alienation, assignment made, or other transaction entered into before the date of the coming into operation of this Act.