Introduction

An amalgamation or reconstruction of companies under sections 366 and 370 of the Companies Act 2016 ("CA 2016") is a common tool for corporate restructuring in Malaysia. It enables the seamless transfer of assets and liabilities from the transferor to the transferee, typically within group structures where both companies share a common ultimate holding company.

Introduction and Brief Facts

The Kuala Lumpur High Court recently dismissed an application for a judicial management order and in its decision introduced procedural safeguards to prevent the abuse of the judicial management process.