Have you ever wondered that what if the world suddenly just pauses for a while such as all activities carried out by human aka homosapien just stop for a while for a moment?
Well if you have dream about a world with a pause button. Apparently, a genie has heard your wish and now there’s a global pandemic that pauses most of human’s activities.
However, a pause to this world might be good to the environment but it also affects and drag the world’s economy. People are losing jobs, crime rate might eventually increase in the future due to lack of income.
So, the question here is that how the government is attempting to save the economy? Today, we are going to talk about one of the methods the government attempt to save the economy which is by saving companies from winding up.
The Minister of Domestic Trade and Consumer Affairs has now exercised their powers under Section 615 of the Company Act 2016 and gazette the Companies (Exemption) (No.2) Order 2020
Previously, pursuant to section 466(1)(a) of the Company Act 2016, to wind up a company there must be a statutory demand that the company has owed a debt of RM10,000 above and once the company has failed to respond to that statutory demand within 21 days. The creditor may present a winding up petition in the High Court to wind up the company.
However, for now pursuant to this Companies (Exemption) (No.2) Order 2020:
The threshold for statutory demand has temporary increase to RM50,000 and the time limit for the company to pay up has also increase from 21 days to 6 months which mean, it directly slows down and give time for the companies (especially small companies) to recover their finance and to pay their debt.
This is one of the government initiatives to save the companies and trying to reduce their burden so that they would not try to close up their company and to secure their employee’s job in this global pandemic.
