In the case of Macro Resources, we saw multiple extensions of the judicial management order.
We are able to track the timeline of the judicial management through Lie Hoe Corporation’s stock exchange announcements. Macro Resources Sdn Bhd ( Macro Resources) is a subsidiary of the listed corporation, Lien Hoe Corporation Berhad. The Background Facts of Macro Resources’ Judicial Management Judicial Management Order and First Extension Therefore, it was largely thought that the maximum duration of a judicial management order could only be for the initial period of 6 months and with only one extension of a further 6 months. “A judicial management order shall remain in force for a period of six months from the date of the making of the order … but the Court may, on the application of a judicial manager, extend this period for another six months …” One difference in Malaysia is the phrasing of section 406 of the Companies Act 2016 ( CA 2016) in setting out the “ Duration of judicial management order and its extension“.
Malaysia adopted the judicial management provisions from Singapore. This decision appears to confirm that a judicial management order in Malaysia can only be made for the initial 6 months and with a single extension of 6 months only (i.e. In the matter involving Macro Resources Sdn Bhd, the Shah Alam High Court has set aside the extensions of the judicial management order made beyond the period of the initial 12 months.
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