The passing of the Malaysian Companies Bill 2015 (Companies Act 2016), which will replace the Companies Act 1965 (Companies Act 1965), marks the most comprehensive legislative change in Malaysia’s corporate law in 50 years. 

When it enters into effect on a date yet to be determined, the new Malaysian Companies Act 2016 will make significant changes to Malaysia’s corporate insolvency regime. Key reforms include the introduction of:

• two new corporate rescue mechanisms: judicial management and corporate voluntary arrangement; and
• additional controls on court sanctioned schemes of arrangement to make this process more effective as a means of effecting corporate debt restructuring.