Legal Alert: Winding Up Threshold Increased to RM50,000.00

Effective 1 April 2021, the winding up threshold for companies has been increased to RM50,000.00 pursuant to Gazette Notice No. 4159 from the previous winding up threshold of RM10,000.00, which means that creditor can only commence a winding-up proceeding against a debtor company for inability to pay debts if the debtor company fails to satisfy a debt exceeding RM50,000.00. This increase was determined by the Minister of Domestic Trade and Consumer Affairs in accordance with his powers under Section 466(1)(a) of the Companies Act 2016.

This follows the temporary increase of the winding up threshold on 18 March 2020 during the height of the Covid-19 Pandemic.