Section 176 of Companies Act 1965 – Some Issues and Implications

Abstract

In the era of harsh economic recession, many financially over-stretched companies have run into difficulties and crisis. Inevitably, they have suffered the trauma of large corporate debts and are nical ht Bape cscs Sabah ose by about 105 in the i six months of 998, 15 ih sametoken, corpora dvd bap nSngpor eed by 20% veh sme period in 1997 due to the Asian Economic downturn?. These highly- geared corporations have little choice but to formulate survival options including strategies for corporate rescues and reconstruc. ons. One option which hs ncresingy ben served a Ifline 1 Myson compares i 3 en ssn fame Ten VERSO Companies Act 1965. According to reliable sources, there are about cighty financially-troubled companies which have applied for Section 176 to undertake reconstruction and more could be con sidering the same move® This article will examine some of the issues and implications pursuant to | Section 176 of the Malaysian Companies Act, 1965.