The Minister of Domestic Trade and Consumer Affairs, Datuk Seri Alexander Nanta Linggi had via Gazette No. 4159/2021 increased the amount of indebtedness under Section 46(1)(a) of the Companies Act 2016 to be RM50,000 be effect from 1 April 2021.
The increase in the company indebtedness is expected to further reduce the number of winding-up petitions and was aimed at reducing the burden and impact on companies facing cash flow problems.
In short, a winding-up petition could only be proceeded if the amount owing is at least RM50,000 or more.
The current prescription order does not have date set and thus will remain in effect until amended or revoke by subsequent order.
*Follow us on: Facebook or Linkedin for updates
*Follow us on: Telegram for Updates on Corporate Advisory
*Follow us on: Telegram for updates on Company Secretary