The Court of Appeal has held that the receiver/manager of a company in liquidation is not obliged to submit accounts, documents, monies or other movable assets to the liquidator. However, a definitive ruling as to the true powers of a receiver/manager in such cases is nonetheless required.
The recent case of Ban Hin Lee Bank Berhad v Applied Magnetics (M) Sdn Bhd (In Liquidation) illustrates how an amendment to the Employment Act 1955 works to the advantage of unpaid employees in liquidation proceedings.
The domestic courts recently handed down significant decisions on insolvency matters including the sale of land by private treaty, the power of the courts to grant costs in winding-up proceedings and the procedure for taking action against a court-appointed provisional liquidator.
The Federal Court recently held that a receiver who is an agent of the company in receivership, and who holds a valid power of attorney conferred under a debenture created by the company, can sell land secured under the debenture by private treaty provided that the company is not in liquidation.