27 February 2020
On 24 January 2020, the Companies Commission of Malaysia issued Circular No 1 of 2020 titled “Guidance Notes on the Registration of Firms of Liquidators and Notification on the Approval as an Approved Liquidator” (“Circular”). The Circular serves to guide an approved liquidator to register a firm for the purpose of practising as liquidator and notify the Registrar of the CCM (“Registrar”) on his approval as an approved liquidator.
Section 433(3) of the Companies Act 2016 allows an eligible person who is a member of a recognised professional body to apply to the Minister for Finance to be approved as a liquidator. The Minister for Finance may approve the application if he is satisfied with the experience and capacity of the person and upon payment of the prescribed fee. The Minister for Finance has delegated the responsibility to process and approve such applications to the Accountant General’s Department of Malaysia (“AG”). In this regard, the AG had issued “Guidelines for Approval of Liquidator” (“Guidelines”) to set out the application procedures as well as the requirements to be fulfilled by an applicant for approval as a liquidator.
An Approved Liquidator must commence his practice:
- if the liquidator wishes to set up a public practice in his own capacity or jointly with another approved liquidator, within six months from the date of approval; or
- if the liquidator wishes to join as partner to an existing firm of liquidators, within three months from the date of approval.
The Guidelines state that a person who has received the Certificate of Approval as An Approved Liquidator must:
- notify the Registrar within 30 days from the date of issuance of the certificate; and
- update any information with regards to the notification within 30 days from the date of changes.