Bar Council Life Insurance for Members

Nomination Form

Application for Termination of Winding Up

 
Mode: Summons in Chambers (Understanding: Notice of motion is only for those matters listed in the winding up rules), supported by Affidavit in Support

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Lee Shih stated on 4.12.2017 that "The Companies Act 2016 only provides for the prescribed form under section 493 for lodging the court order for termination. This is found on the SSM website. The procedure for such termination would have to be governed generally under case law as well as the Winding Up Rules 1972. The winding up rules do not explicit set out the procedure for termination (and neither does it set out the stay procedure), but I am of the view that the application can be made by way of Summons in Chambers under Rule 6 read together with Rule 7 (2) of the Winding Up Rules.

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So the story was, we applied by SIC, and proposed to make all payments to Insolvency Department. 

Insolvency had no objections to a stay, pending their preparation of a report. 

In the end, client had to pay fees of approximately RM115K to the Insolvency Department for the termination to be granted (fees charged by the Insolvency Department).

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Moral of the story: Don't ignore demands from creditors, if you're wound up and wish to revive the company, it would be a more challenging task. 

But we managed to get the Winding Up Order terminated within 1 month of its grant, which was not bad at all. 

Settlement Proposal

1. We refer to the above matter, wherein we act for +++, the +++.

2. We also refer to your letter dated +++ and the telephone conversation between +++.

Strictly on a without prejudice basis, we are instructed by our client to propose the following terms and conditions, as full and final settlement of the above matter:-

(a) Our client is agreeable to pay the sum of +++ to your client, as full and final settlement of the above matter (“Settlement Sum”).

(b) The Settlement Sum shall be released to you as the solicitors for your client, as stakeholder on or before +++ subject to the following terms and conditions:-

(i) Your client shall forthwith withdraw +++ upon receipt of the Settlement Sum by you as stakeholder;

(ii) Upon the +++, you may proceed to release the Settlement Sum to your client; and

(iii) Both parties shall bear their own costs in relation to the above matters.

(c) This Settlement constitutes a full final settlement of all claims and/or liabilities between +++ and +++, and all Parties shall have no further claims and/or liabilities whatsoever against each other.

4. Pending negotiation between Parties, we would be grateful if your client can hold +++ in abeyance.

5. We trust you will impress upon your client that our client is prepared to resolve the above matter amicably and we would be grateful if you could revert with your client’s agreement on the above terms within seven (7) days from the date hereof.

6. For the avoidance of doubt, our client expressly reserves all its rights.