Corporate insolvency laws in abandoned housing projects : issues and prospects / Nuarrual Hilal Dahlan.

Format:

Book

Author/Creator:

Dahlan, Nuarrual Hilal, author.

Language:

English

Subjects (All):

Bankruptcy--Malaysia.

Bankruptcy.

Real estate development--Law and legislation.

Real estate development.

Physical Description:

1 online resource (262 pages)

Place of Publication:

Sintok, Kedah : Penerbit UUM Press, [2014]

Summary:

This book discusses the provisions and legal principles under the Insolvency Law in Malaysia in face of the issue of abandoned housing projects and its rehabilitation. Apart from the Malaysian Insolvency Law, this book also analyses comparatively between the insolvency legal provisions and legal principles under the United Kingdom and Singapore Insolvency Laws. The approach of this book is by way of legal analyses over the relevant insolvency legal provisions in Malaysia, the United Kingdom and the Republic of Singapore. The discussion is further enriched and collaborated by the case studies conducted over several abandoned housing projects in Malaysia that have been subject to the insolvency administration. In addition, the author also provides relevant official statistics and reports of abandoned housing projects and numerous examples of abandoned housing project cases illustrating the diverse problems, complications, issues and grievances. The outcome and proposals of this book will be beneficial to the legal practitioners, judicial and legal services, insolvency practitioners, housing developers, financial institutions, contractors, housing consultants, technical agencies, land and state authorities, purchasers of units in abandoned housing projects, consumers' associations, relevant private and government agencies and Federal and States Ministries, students and policy makers in the insolvency legal administration in Malaysia, particularly for those who are directly involved in abandoned housing projects and its rehabilitation in Malaysia.

Contents:

Intro

Preface

Acknowledgements

Abbreviations

Cases

Statutes

1 | Introduction

Abandoned housing projects in Peninsular Malaysia

Definition of abandoned housing projects

Abandoned housing projects as reported by the case law

Causes of housing abandonment

Insolvency of housing developer companies

Grievances of purchasers in abandoned housing projects in Peninsular Malaysia

1 This can be seen from the funding provisions for public housing in the National Development Plan through the Second Malaysia Plan amounting to RM 171.89 million, Third Malaysia Plan-RM 710.15 million, Fourth Malaysia Plan-RM 1.458 billion, Fifth Malaysia Plan-RM 1.979 billion, Sixth Malaysia Plan-RM 803 million, Seventh Malaysia Plan-RM 2.875 billion, Eighth Malaysia Plan- RM 4.223 billion and finally for the Ninth Malaysia Plan-RM 18.445 billion. For the latest Ninth Malaysia Plan, see Econom

2 | Insolvency Law and Issues

Types of insolvency of housing developer companies

Liquidation or winding up of companies

Purpose of liquidation

Priority of debts payment

The superiority of the creditors and contributories

Effect of liquidation

Provisional liquidator

Receivership

Scheme of Arrangement (SOA)

Recommendations by Corporate Law Reform Committee (CLRC)

Rehabilitation of abandoned housing projects

Recent development on measures to deal with abandoned housing projects

Special law to govern rehabilitation of abandoned housing projects.

53 According to Walter CM Woon, any creditor, secured or unsecured, may present a petition for the winding up of the company. A prospective or contingent creditor may also present such a petition. A contingent creditor is a creditor in respect of a debt which will only become due upon the happening of an event which may or may not occur. A prospective creditor is a creditor in respect of a debt which will certainly become due in the future, either on some date which has been already determined o

3 | Case Study One: K&amp

T Development Sdn. Bhd.

Summary of the project151

The winding up and post winding up stage

Issues and problems

Legal analysis

Recommendations by the Corporate Law Reform Committee (CLRC)

The appointment of Judicial Manager

The improvement in the appointment and powers of Receiver and Manager

The establishment of Corporate Voluntary Arrangement

150 On 20 October, 1999, Majlis Perbandaran Kajang ('MPKj') issued CF for the 86 and 136 units of the medium-cost-single-storey-terraced-houses in accordance with Plan No. MPKJ 6/P/14/23 PT.1, which had been approved by the Majlis Daerah Hulu Langat ('MDHL') on 15 December 1994 and 18 October, 1995, respectively. These are based on files number MPKj PB/KM 2/41-99 and MPKJ 6/P/14/93/PT 1. 151 See Nuarrual Hilal Md. Dahlan, "Abandoned housing projects in Peninsular Malaysia: Legal and regulatory f

4 | Case Study Two: Saktimuna Sdn. Bhd.

Summary of the project

Rehabilitation of phases 1B and 2

Problems in the rehabilitation of phases 1A and 2

Legal analysis.

244 Based on the approved site plan of JPBD in file number PTD. U.L1/2/364-Semt. 245 Order of the High Court dated 11th March, 2005 pursuant to Rule 34(1) of the Winding Up Rules 1972 and Notice of Appointment of Liquidator dated 15th May, 2009 in File No. JIM(WP)14/2005/A. 246 Letter from the Division of Supervision and Enforcement, MHLG, Blok B Utara, Aras 3, Pusat Bandar Damansara, Peti Surat 12579, 50782 Kuala Lumpur to one Yon Kui Fah of No. 15B, Kampung Sungai Makau, 43100 Hulu Langat, Sel

5 | Insolvency laws in the United Kingdom and its possible application to abandoned housing projects

The purpose of insolvency law

Liquidation of companies in the United Kingdom

Liquidator's removal

Priority of payments

Other insolvency approaches in dealing with abandoned housing projects in the United Kingdom

Administration

Company Voluntary Arrangement (CVA)

326 D.G Baird and T.H. Jackson, 'Corporate Reorganization and the Treatment of Diverse Ownership Interests': A Comment on Adequate Protection of Secured Creditors in Bankruptcy' (1984) 51 University of Chicago Law Review, 97 at 103, quoted from Andrew Keay &amp

Peter Walton, Insolvency Law, Corporate and Personal, (London: Pearson Longman, 2003), 21, footnote 1. This principle is enshrined under the provisions of the Malaysian insolvency statutes, especially the Malaysian Companies Act 1965 (Act 12

6 | Insolvency Laws in the Republic of Singapore and its Possible Application to Abandoned Housing Projects

Liquidation in Singapore

Powers of liquidator in compulsory winding up

Priority of payments in compulsory winding up

Judicial management

431 Walter CM Woon, Walter Woon on Company Law, General ed. Tan Cheng Han, SC, (Singapore: Sweet &amp.

Maxwell, Thompson Reuters, Revised 3rd ed., 2009), 757. 432 In this case, Jurong Shipyard Pte Ltd ('JSPL') entered into a number of foreign exchange contracts with one of its bankers, BNP Paribas ('BNP') as counterparty. The instructions for these contracts were given by one of JSPL's directors. Subsequently, JSPL's board of directors came to know of the contracts and repudiated them on various gro

7 | The Way Forward to Improve Corporate Insolvency Law and Practice in Dealing with Abandoned Housing Projects

Proposal for a new provision under Act 118 incorporating regulations governing rehabilitation of abandoned housing projects

Recommendations for amendments of liquidation provisions under the companies act

Recommendations for amendments of receivership provisions under the companies act

Recommendations for amendments of Scheme of Arrangement (SOA) provisions under the companies act

Recommendations for amendments to the CLRC's proposals in regard to SOA, judicial management, receivership and CVA

467 Note that this suggestion has not been mooted by PEMUDAH in dealing with problems of abandoned housing projects and their rehabilitation. See PEMUDAH Annual Report 2011, http://www.pemudah. gov.my (accessed on 3 May, 2012). 468 See section 9 of the Housing Development (Control and Licensing)(Amendment) Act 2012 (Act A1415). This amending act was gazetted on 9 February 2012. However, at the time this book is prepared, the said amending act has as yet to be enforced. The Housing Development (C

Appendix 1

Appendix 2

Appendix 3

Appendix 4

Appendix 5

Appendix 6

Appendix 7

Appendix 8

Appendix 9

Appendix 10

Appendix 11

Appendix 12

Appendix 13

Appendix 14

Appendix 15

Appendix 16

Appendix 17

Appendix 18

Appendix 19

Appendix 20

Appendix 21

References

INDEX.

Notes:

Description based on print version record.

ISBN:

967-2210-55-8

OCLC:

1276859626