Section 447. Duty of liquidator to call for creditors’ meeting in case of insolvency

(1) If the liquidator is of the opinion that the company will not be able to pay or provide for the payment of its debts in full within the period stated in the declaration made under section 443, the liquidator shall forthwith summon a meeting of the creditors and lay before the meeting a statement of the assets and liabilities of the company and the notice summoning the meeting shall draw the attention of the creditors to the right conferred upon the creditors by subsection (2).

(2) The creditors may, at the meeting summoned under subsection (1), appoint—

(a) the liquidator appointed by the company; or

(b) any other person to be the liquidator,

for the purpose of winding up the affairs and distributing the assets of the company.

(3) Once a meeting of creditors is held under subsection (1), the winding up shall thereafter proceed as if the winding up were a creditors’ voluntary winding up.

(4) The liquidator or if some other person has been appointed by the creditors to be the liquidator, the person so appointed shall lodge with the Registrar and with the Official Receiver a notice containing information as may be determined by the Registrar within seven days from a meeting which has been held under subsection (1).

(5) Where a members’ voluntary winding up has become a creditors’ voluntary winding up, and the creditors’ meeting under subsection (3) is held three months or less before the end of the first year from the commencement of the winding up, the liquidator is not required by this section to summon a meeting of creditors at the end of that year if the liquidator is the liquidator appointed by the company.

(6) The liquidator or the person appointed as a liquidator by the creditors who contravenes subsection (4) commits an offence and shall, on conviction, be liable to a fine not exceeding ten thousand ringgit and, in the case of a continuing offence, to a further fine not exceeding five hundred ringgit for each day during which the offence continues after conviction.