3 days ago
- Business
- New Straits Times
Bill adopting UN model law on cross-border insolvency tabled
KUALA LUMPUR: A bill incorporating international principles on cross-border insolvency was tabled for its first reading in the Dewan Rakyat today, aimed at increasing cooperation between courts and authorities in Malaysia and other nations involved in cross-border insolvency.
Minister in the Prime Minister's Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said tabled the bill, which adopts the main principles of the 1997 United Nations Commission on International Trade Law (UNCITRAL) Model Law on Cross-Border Insolvency.
Its preamble states that the bill is intended to protect the interests of creditors, debtors and relevant parties while preserving and maximising the value of the debtor's assets.
It also seeks to facilitate the rescue of financially distressed businesses to safeguard investments and preserve jobs.
However, the bill does not apply to the insolvency or bankruptcy of individuals under the Insolvency Act 1967, limited liability partnerships (LLPs) and foreign LLPs under the LLP Act 2012, among others.
