Abstract:

In the 2011 Malaysian budget announcement, it was stated that the recent economic crisis, saw a number of businessmen and individuals with financial problems being declared bankrupt. Personal and corporate insolvency can have a debilitating effect on the economy and society as a whole. The recent public ‘bail outs’ of big American companies has set in motion a rethinking of insolvency laws. This paper examines the calls for reform of the insolvency laws in Malaysia. It looks at the objectives of insolvency laws in general, identifies the most common causes for insolvency in Malaysia and goes on to study the possible areas for reform.