Section 507. Investment of surplus funds on general account

(1) Subject to the direction in writing of the committee of inspection, or if there is no committee of inspection, by the liquidator himself, whenever the cash balance standing to the credit of any company in liquidation is in excess of the amount which is required for the time being to answer demands in respect of the estate of the company, the excess sum may—

(a) be invested in securities issued by the Government of Malaysia; or

(b) be placed on deposit at interest or with return with any bank.

(2) On the application by any creditor who is not satisfied with the direction or decision relating to the investment made under subsection (1), the Court may direct otherwise if it thinks fit.

(3) Any interest received in respect of the investment shall form part of the assets of the company.

(4) Wheneveranypartofthemoneysoinvestedis,intheopinion of the committee of inspection, or, if there is no committee of inspection, of the liquidator, required to answer any demands in respect of the company’s estate, the committee of inspection may direct, or, if there is no committee of inspection, the liquidator may arrange for the sale or realization of such part of the securities referred to in paragraph (1)(a) as is necessary.