Malaysia legislation
Section 77
Section 77
(2)
When any part of the money so invested is in the opinion of the Director General of Insolvency required to answer any demands in respect of insolvent estates, the Director General of Insolvency shall notify to the Minister the amount so required and the Minister shall thereupon pay to the Director General of Insolvency such sum as may be required to the credit of the Bankruptcy Estates
Account and for that purpose the Minister may direct the sale of such part of the said securities as may be necessary.
(3)
Any profits on the sale of any of the securities placed to the credit of a Bankruptcy Estates Account shall be credited to the Insolvency Assistance Fund and the Insolvency Assistance
Fund shall be liable to make good any loss arising out of the sale of such securities.
(4)
The dividends on investments made under this section shall be credited to the Insolvency Assistance Fund and regard shall be had to the amount thus derived in fixing the fees payable in respect of proceedings in bankruptcy.
Insolvency Assistance Fund 77a. (1) A fund to be known as the “Insolvency Assistance Fund”
is established and shall be administered and controlled by the
Director General of Insolvency.
(2)
The Fund shall consist of—
(a)
the profit of the investment under section 77; and
(b)
all costs, fees, charges and moneys recovered by the
Director General of Insolvency in any proceedings taken under this Act in which moneys from the Fund were applied.
(3)
Subject to subsection (4), the Fund may be applied by the
Director General of Insolvency for all or any of the following purposes:
(a)
for the payment of all costs, fees and allowances to advocates or other persons in any proceedings on behalf of a bankrupt’s estate or to recover assets of the estate;
Act 360
(b)
for the payment of such costs and fees in the administration of a bankrupt’s estate as the Director General of Insolvency may determine;
(c)
for the payment of any expenses to provide an efficient and effective administration of a bankrupt’s estate that meets an appropriate standard of service; or
(d)
for such other purposes as may be prescribed.
(4)
No moneys from the Fund shall be applied for any proceedings where, in the opinion of the Director General of
Insolvency, there is no reasonable ground for taking, defending, continuing or being a party to the proceedings or where there are sufficient moneys for such purpose in the bankrupt’s estate.
Inspection and audit of Director General of Insolvency’s accounts