This article is part of a series exploring court actions available under the Companies Act (Chapter 386 of the Laws of Malta). Each article gives a practical overview of a specific legal remedy or procedure involving court supervision; outlining when it applies, the steps required, and the purpose behind it. It is intended as a useful reference point rather than an in-depth academic analysis.

Introduction

The Federal Court’s recent decision in Victor Saw Seng Kee (as joint liquidator of London Biscuits Bhd (in liquidation)) v Wong Weng Foo & Co & Anor and other appeals [2026] 2 MLJ 23 is a definitive judgment and an important authority for insolvency practice in Malaysia.

When a company in the UAE starts missing payments, the legal risk does not stop at the balance sheet. For directors, financial distress can quickly become personal. Director liability in UAE insolvency is not a theoretical concern reserved for extreme cases. It becomes relevant the moment management delays action, conceals losses, favors certain creditors, or continues trading without a credible path forward.

The Act on Financial Debt Adjustment Procedures for Enterprises to Facilitate Business Recovery, commonly referred to as the Early Business Recovery Act (the "Act"), was enacted in June 2025. It is scheduled to come into force by mid-December 2026, following the development of the relevant ministerial ordinances and related rules. The Act enables the restructuring of an enterprise’s financial indebtedness through a majority vote of financial creditors and court sanction.

I. WHY THIS TOPIC IS IMPORTANT

In the current environment of heightened geopolitical tension, including the effective closure of the Strait of Hormuz and impacts on regional oil and gas infrastructure, global supply chain disruption and volatility in energy markets, force majeure provisions are more important than ever.

[2026] EWHC 819 (Ch)

InstaGroup makes insulation materials and subcontracts the installation of those materials to third parties, such as Northwest, who entered into creditors’ voluntary liquidation in August 2025. Mr Stansfield was a director of Northwest from 27 August 2008 until 19 April 2022. InstaGroup alleged that Northwest breached an agreement dating from 2013, and claimed over £3 million against Northwest. InstaGroup made a claim against Mr Stansfield based on the terms of a Guarantee entered into in 2008.

A statutory demand is a formal notice under the Corporations Act 2001 (Cth) (Act) requiring a company to pay a debt or provide security within a prescribed timeframe. Ignoring it can have serious consequences, including insolvency proceedings. In an era of digital communication, can a statutory demand be validly served by email?

What does the law say?