1. Adjusting the imbalance caused by the secured creditor’s veto in Malaysian judicial management: lessons from Singapore.
- Author
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Balan, Sujata
- Subjects
- *
CORPORATE bankruptcy , *JUDICIAL process , *VETO , *INDUSTRIAL management , *LIQUIDATION - Abstract
The Companies Act 2016 introduced judicial management as a corporate rescue mechanism in Malaysia to rehabilitate financially distressed companies or to facilitate a more advantageous asset realisation, as an alternative to liquidation. A significant aspect of this framework is the right of secured creditors to veto the making of a judicial management order under section 409 of the Act. This article critiques this veto power, arguing that it creates an imbalance between secured and unsecured creditors, particularly in accessing the judicial management process. It also reviews legislative changes in Singapore related to this issue, suggesting that Malaysia should consider similar amendments to enhance fairness. The article advocates for adopting Singapore's approach to recalibrate the rights of creditors, which would promote a more equitable consideration of interests among creditors within the Malaysian judicial management scheme, ultimately benefiting the overall framework. [ABSTRACT FROM AUTHOR]
- Published
- 2025
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