Companies (No5) Law Amendment 2015

Following the approval of a new amendment to the Companies Law, Cap 113, new Section 298B provides that in every winding up of an insolvent company, the provisions of Bankruptcy Law (Cap 5) shall prevail with regard to the property of any person adjudged bankrupt and with regard to the respective rights of secured and unsecured creditors and to debts provable and to the valuation of annuities and future and contingent liabilities and all persons who would be entitled to prove for and receive dividends out of the assets of the company may come in under the winding up of the company and make such claims against the company. It is further provided that the provisions of Section 35 of the Bankruptcy Law shall apply mutatis mutandis in cases of setting off a debt.

Please note that the approved amendment takes effect from May 7, 2015.