Welcome to SKMN Insolvency!


An increasing number of directors are finding it difficult to keep their business afloat in this uncertain economic climate.
This has also let to an increase in the household debt which has touched a large number of individuals nationally.

Our corporate insolvency services are as below:

Judicial management or company administration in western countries are primarily geared towards promoting the recovery of companies that are or are likely to become insolvent by placing them under the control and guidance of qualified insolvency practitioner known as judicial manager.


The objective of judicial management are:

  1. To rescue the company as a going concern.
  2. To get better result for unsecured creditors compared with putting the company into liquidation.
  3. To realise the companys’ property in order to make a distribution one or more to its preferential and secured creditors.

The above were introduced in Companies Act, 2016 that is in line with global scheme in corporate rescue mechanism.

A CVA is a legally binding agreement allow the directors of the struggling company to make a formal arrangement with its creditors.

There is a limited involvement of the Court and the scheme is under the control of insolvency practitioner.


The process for Company Voluntary Arrangement are:

  1. Initial meeting between the directors and licensed insolvency practitioners.
  2. The CVA proposal set out the basis of repayment plan.
  3. Nominating the “Nominee” to prepare the proposal for creditors and court sanction.
  4. Meeting of creditors to get their consent.
  5. Once creditors consent obtained the licensed insolvency practitioner will notify creditors, court, directors and company for implementation.
  6. If there are variatons to term of CVA the licensed insolvency practitioners have get the majoritry of 75% of creditors to accept.
  7. In the event of failure to get creditors consent, the company will be exposed to compulsory liquidations.
  8. On completion of CVA the creditors, court and company will be notified accordingly.

The MVL allow directors of solvent company to close the business and distribute excess assets. This is appropriate in cases where the business has simply ceased to trade, where shareholders wish to obtain a tax free refund of capital.


The MVL is usually legated when the company comes to an end of its useful life and the director wish to retire or work on new projects.

The CVL enable the directors to formally close an insolvent company following the inability of the company to pay its debts in full. This type of winding up allows the directors to nominate their own liquidators subject to consent of creditors.The liquidators once appointed will realise assets to pay first the chargee and pay balance if any to unsecured creditors based on order of priority as stated in Companies Act, 2016.

This type of liquidation initiated by creditors due to the failure of the company to pay its debts after being demanded for several times. The creditors have the option to nominate licensed insolvency practitioners or otherwise director of Malaysian Department of Insolvency be appointed provisional liquidator.

This compulsory liquidation may also happen at the request of shareholders in cases like minority opression or deadlook in management.

It is normal for the banks or lenders to have a provision in the loan agreement to the appointment of receivers and managers in the event the borrower have defaulted and loan in jeopardy.


This is a court driven process whereby licensed insolvency practitioners nominated by banks or lenders to realize the assets pledged to them to pay off the debts.


The R & M must be insolvency  practitioner who must already been appointed on the panel of the said banks/ lenders.

The directors can apply for company strike off if the company do not have assets, do not have liabilities, small paid up capital and ceased trading.


The Company Commission of Malaysia can also strike off companies if they believed the company no longer active and do not own assets and do not have  liabilities.

There were cases for certain reasons the directors wanted to bring back the company into existance after being dissolved. The common reason the company have assets that the directors are not aware off and can fetch better price.

Our insolvency advice is free of charge covers everthing you need to know about liquidating your company or personal insolvency.


Generally directors and shareholders of a company with limited liability status are not liable for the debts of the company unless they have signed an undertaking to honour any debts in the event the company could not pay. Insolvent companies liquidation may expose the directors personally to make good the debts of the company.