Malaysia Case Law: Decisions & Judgments | LexChat

Malaysia Case Law

Avoidance of dispositions after presentation of winding‑up petition

  • 11 Jan 2024

    AUGUSTINE A/L T.K. JAMES 1. ) LIEW CHONG MIN 2. ) NG TUCK WENG 3. ) TAN KINV TAT

    Citation
    W-02(A)-1296-07/2022 (Mahkamah Rayuan)
    Court
    A
    Case number
    W-02(A)-1296-07/2022 (Mahkamah Rayuan)

    Service of the winding‑up petition at the company's registered/business address under Rule 25(1) imputed knowledge to the 1st Respondent (a director). As a consequence, dispositions made after presentation of the petition are void unless validated. The Court found many dispositions were repayments to persons/companies connected to the 1st Respondent without proper documentary support and therefore were not shown to be beneficial to the general body of creditors nor made in good and honest faith; those dispositions are void. The 1st and 2nd Respondents were ordered jointly and severally liable…

    • Avoidance of dispositions after presentation of winding‑up petition
    • Validation of dispositions
    • Undue preference
    • Directors' duties and knowledge
    • Liability of third‑party solicitors
    • Application of companies act 2016 sections 213, 471/472 and 541

  • 11 Jan 2024

    AUGUSTINE A/L T.K. JAMES (LIQUIDATOR FOR BEGAN CONSTRUCTION SDN BHD) LIEW CHONG MIN

    Citation
    W-02(A)-1297-07/2022 (Mahkamah Rayuan)
    Court
    A
    Case number
    W-02(A)-1297-07/2022 (Mahkamah Rayuan)

    Service of the winding‑up petition at the company's registered office imparted knowledge to the director (1st Respondent); dispositions made after presentation of the petition are void; many payments were repayments to related parties without supporting documentation and thus did not benefit the general body of creditors nor were they bona fide; therefore the dispositions (net RM1,496,730.38 excluding RM20,000 and RM120,000) are void and the 1st and 2nd Respondents are liable to repay; the 3rd Respondent acted on instructions without knowledge and is not liable under s541.

    • Avoidance of dispositions after presentation of winding‑up petition
    • Validation of dispositions
    • Directors' duties and knowledge of proceedings
    • Undue preference and repayments to related parties
    • Liability of third parties and officers under s541