Bankruptcy is a state in which an individual or company would find itself if it is no longer or unable to pay its loans or other credits, in which case regardless of the assets that the individual or company's assets will be liquidated to help fund or repay the loans. In the event that the liquidated assets are still not enough to repay the loans or credits, they now enter a state called bankruptcy declared by the court at the end of a procedure initiated by the creditors. Liquidation of assets usually only takes place when the person or company is declared bankrupt by the court and the Insolvency Director takes charge of the assets in an attempt to reduce the debt, which includes liquidation assets. Say no to plagiarism. Get Custom Essay on “Why Violent Video Games Should Not Be Banned”?Get the original essayIn Malaysia, after the recent amendments to the Bankruptcy Act of 1967, bankruptcy has been recognized as insolvency and this law on the bankruptcy of 1967 presides over insolvency matters. in Malaysia. Now the question arises as to who is recognized by the Law as bankrupt or also known as a debtor within the meaning of this law. Section 3(3) of the Bankruptcy Act 1967 addresses these doubts by setting out four categories of persons including those who are present in Malaysia, have a residence in Malaysia or have done business in Malaysia personally or through through an agent or have been members. in a company or partnership based in Malaysia.[1] It is important to note that it only speaks of individuals as a natural person and does not mention corporations or corporations. Does this mean that businesses in Malaysia cannot go bankrupt? In Malaysia, companies can go bankrupt but this process is known as the liquidation process and is governed by the Companies Act 2016. Companies themselves can apply for the process whereby if there is has a surplus after the settlement of debts, it will be shared among the shareholders. and can also be instituted at the insistence of creditors as well as through the court.[2] In the event of liquidation, the company can either hire a liquidator or hand it over to the Insolvency Director who will help manage and sort out the debts as well as the assets of the company at closure which may lead to dissolution. of the company. To help businesses facing insolvency issues, two new reforms were introduced in the Companies Act 2016: Judicial Management and Company Voluntary Arrangement. Judicial management is the process by which the company is handed over to a judicial manager who is supervised by the court until a certain extent in order to revitalize the finances of the company by introducing financial principles to be respected . This is generally granted to businesses that are unable to repay their creditors but have a reasonable chance of recovery.[3] On the other hand, a company voluntary agreement can be granted when 75% of creditors accept it. It is similar to the current system where a liquidator will be appointed with minimal judicial oversight to restructure the company's debts and finances, yet is unable to do so. be accessible to public companies as well as companies in possession of encumbered real estate.[4] As the introduction of the concept of judicial management is relatively new, no cases involving judicial management have been reported to date. Keep in mind: this is just a sample. Get a personalized item now.[5]