Comparative legal analysis of the viability of judicial management on insolvent housing companies in Malaysia, The Republic of Singapore and The United Kingdom in the rehabilitation of abandoned housing projects
Recently, the Corporate Law Reform Committee ('CLRC') operated under the Companies Commission of Malaysia ('CCM') has recommended that judicial management ('JM') be introduced in Malaysia as one of the ways to deal with the corporate insolvency matters.The application f...
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| Format: | Conference or Workshop Item |
| Language: | English |
| Published: |
2012
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| Subjects: | |
| Online Access: | http://repo.uum.edu.my/6824/1/Nuar.pdf http://repo.uum.edu.my/6824/ |
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| Summary: | Recently, the Corporate Law Reform Committee ('CLRC') operated under the Companies Commission of Malaysia ('CCM') has recommended that judicial management ('JM') be introduced in Malaysia as one of the ways to deal with the corporate insolvency matters.The application for appointment of JM may be made by the company itself, the directors or the creditors.The JM is armed with a moratorium power against any action taken which may be commenced by the creditors and others to ensure that he can effectively carry out his duty to prepare and implement the approved restructuring plan for the benefits of the insolvent company and its creditors as a going concern. This paper aims to elaborate the CLRC's recommendations on Judicial Management and to study its strength and weaknesses particularly in dealing with the problems of abandoned housing projects.This paper also is a result of a research conducted through a comparative legal research methodology.Two jurisdictions, viz the Republic of Singapore and the United Kingdom, have been selected for comparative analysis over their respective laws and practices on Judicial Management.Further, this comparative study is to investigate, identify and find the respective jurisdictions' strengths and weaknesses on Judicial Management, which Malaysia can learn from particularly in the face of the abandoned housing projects' problems.This paper finds that the recommendation by the CLRC for the appointment of Judicial Manager is commendable.Nonetheless, it is submitted that, in the case of abandoned housing projects, his appointment armed with certain statutory and legal powers as recommended by the CLRC still does not fully provide comprehensive solution in dealing with the rehabilitation of abandoned housing projects and protect the rights and interests of the aggrieved purchasers. Equally, this paper suggests certain proposals to improve the corporate rehabilitation mechanism carried out by the JM in insolvency administration involving insolvent housing developer companies whose housing development projects are abandoned.In the course of carrying the judicial management, this paper also suggests certain ideas on how to protect the rights and interests of the aggrieved purchasers in abandoned housing projects. |
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