𝐇𝐨𝐰 𝐦𝐮𝐜𝐡 𝐜𝐚𝐧 𝐢 𝐰𝐢𝐧𝐝 𝐮𝐩 𝐦𝐲 𝐝𝐞𝐛𝐭𝐨𝐫 𝐰𝐡𝐨 𝐫𝐞𝐟𝐮𝐬𝐞 𝐭𝐨 𝐩𝐚𝐲 𝐦𝐞?

Inability to pay debt under the Company Act 2016

The amount of indebtedness for the purposes of “𝐢𝐧𝐚𝐛𝐢𝐥𝐢𝐭𝐲 𝐭𝐨 𝐩𝐚𝐲 𝐝𝐞𝐛𝐭𝐬” under section 466(1)(a) of the Companies Act 2016 has been increased to an amount exceeding 𝐑𝐌𝟓𝟎,𝟎𝟎𝟎 from 1 January 2021 until 31 March 2021.1

21 day notice served at registered office

During the aforesaid period, a creditor may only commence winding-up proceedings against a debtor company for inability to pay debts under section 466(1)(a) if the debtor company fails to satisfy a debt exceeding RM50,000, or to secure or compound the said sum with the creditor, within 21 days after a notice of demand has been served upon the debtor company at its registered office.

Past threshold of wining up proceeding

The previous threshold is RM10,000 & above of indebtedness.

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