Bankruptcy is a state in which an individual or company would find itself if it no longer or was unable to pay its loans or other debts, in which case whatever the assets that the individual or company's assets will be liquidated to help finance or repay loans. In the event that the liquidated assets are still not sufficient to repay the loans or credits, they enter a state called bankruptcy declared by the court through a procedure established by the creditors. Liquidation of assets usually only occurs when the individual or company is declared bankrupt by the court and the Director General of Insolvency Procedures will take charge of the properties in an attempt to reduce the debt which includes liquidation of the assets. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get Original EssayIn Malaysia, after the recent amendments to the Bankruptcy Act 1967, bankruptcy has been recognized as insolvency and this Bankruptcy Act 1967 presides over insolvency issues in Malaysia. Now the question arises as to who the law recognizes as bankrupts or also called debtors under this law. Section 3(3) of the Bankruptcy Act 1967 addresses these concerns by indicating four classes of individuals which include those who are present in Malaysia, have a residence in Malaysia or have carried on business in Malaysia personally or through an agent or have been members in a company or partnership based in Malaysia.[1] It is important to note that we only talk about individuals in the guise of a natural person and neither companies nor corporations are mentioned. Does this mean that companies in Malaysia cannot go bankrupt? Companies in Malaysia can go bankrupt, but it is known as the liquidation process and is governed by the Companies Act 2016. Companies themselves could apply for the process where if there is surplus after settling debts, it will be divided among the shareholders. and can also be established at the insistence of creditors as well as through judicial proceedings.[2] In the event of liquidation, the company can hire a liquidator or place it in the hands of the Director General of Insolvency Procedures who will help manage and sort out the debts and assets of the company once what may lead to dissolution is completed. of the company. To help companies with insolvency problems, two new reforms have been introduced in the Companies Act 2016: judicial management and company voluntary composition. Judicial management is the process where the company is placed in the hands of a judicial administrator who is supervised by the court until the time of closure. to a certain extent in order to revitalize the company's finances by introducing financial schemes that must be respected. This is usually granted to companies that are unable to repay their creditors but have a reasonable likelihood of recovering.[3] On the other hand, Company Voluntary Arrangement can be granted when 75% of creditors accept it and is similar to the current regime where a liquidator will be appointed with minimal court supervision to restructure the company's debts and finances but not However, both public companies and companies in possession of a paid property can access it.[4] Since the introduction of the concept of judicial management is relatively new, to date no case involving judicial management has yet been reported. Please note: this is just an example. Get a custom paper from our expert writers now. Get a custom essayLike our research This article focuses more on judicial management mechanisms and specifically we will try to.[5]