To help ease the burden on the corporate communities as a result of the Covid-19 pandemic, the YB Minister of Domestic Trade and Consumer Affairs has issued a directive dated 21 April 2020 pursuant to section 466(1)(a) of the Companies Act 2016 (Act 777) (CA 2016) that the amount of indebtedness of a company is an amount exceeding RM50,000. The order is effective from 23 April 2020 to 31 December 2020.
In addition, the YB Minister has also issued an order pursuant to section 466(1)(a) of the CA 2016 where a company is exempted from responding to any notice of demand within the period of 21 days after the service of the notice of demand on the company. The company is given up to a period of six (6) months instead after the service of the notice of demand on the company to respond to the notice of demand. Failure of the company to respond within that period allows the creditor to file a petition for winding up of the company. This order is effective from 23 April 2020 until 31 December 2020.
The directive and order are in line with the announcement made on 10 April 2020 regarding the initiative of the Companies Commission of Malaysia (SSM) to assist companies impacted by the implementation of the Movement Control Order (MCO) which causes companies that are facing cash flow problems to resolve their accrued business debts.
The directive and order as well as the frequently asked questions can be accessed on SSM's website at www.ssm.com.my.
For any enquiries, please send your email to SSM Contact Centre at firstname.lastname@example.org.
24 April 2020.