Malaysia legislation

Section 15

of COMPANIES (AMENDMENT) ACT 2024

Section 15

The principal Act is amended by inserting after section 398

the following section:

“Recovery of secured property during voluntary arrangement 398a.  (1)  Notwithstanding section 398, a secured creditor may take possession of, exercise any other right in relation to, or otherwise recover, the secured property during a moratorium in a voluntary arrangement if—

(a)

the secured property is not required by the company for the voluntary arrangement;

Companies (Amendment)

(b)

the moratorium poses a high risk to the existence of the secured property; or

(c)

the value of the secured property decreases due to the moratorium.

(2)

A secured creditor shall notify and obtain the consent from the nominee before taking possession of the secured property under subsection (1).

(3)

For the purposes of this section, “secured property”

means any property other than immovable property which is subject to a charge or any other security.”.

Amendment of section 403

Section 15 — COMPANIES (AMENDMENT) ACT 2024 | mylaw.my