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Biztalk-Corporate Recovery Series #13 Can a sanction by the Liquidator be applied retrospectively?

    Liquidator Sanction

    Santion from Liquidator Required

    When a company is placed in liquidation or in winding-up status, any legal action to be taken shall require sanction from the Liquidator or the Official Receiver as the case may be. The question is can the sanction be applied retrospectively?

    In the case of Lai King Lung & Anor v Merais Sdn Bhd, the sanction from the Liquidator was obtained subsequent to the Court application date and the sanction was stated as to take effect retrospectively.

    Sanction has no retrospective effect

    The Apex Court held that the sanction has no retrospective effect. 

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