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Malaysian Companies Act and the most recent amendment was made in 2006.
Therefore, judges have to be cautious when applying foreign decisions to local cases
because the principles used may not be consistent with the local statute. 21
2.3 Aim Of The Research
The thesis starts with the historical backgrounds of the Companies legislation of the
four jurisdictions. Then it discusses the relationship between separate legal entity and
limited liability, particularly in relation to its effects on creditors. In doing so,
provisions intended to protect creditors, such as the doctrine of capital maintenance
and solvency test, are examined. In addition, the research looks at the circumstances
when directors are personally liable for debts of the company and their impact on
creditors. Finally, it studies the issue of remedies and determines whether the awards
granted reflect the intention of the Parliament in addition to other alternative
remedies available to creditors.
Thus, the thesis aims to:
1. Research the differences and similarities of the relevant provisions on
creditors’ protection in the statutes; and
2. To consider whether reforms are needed in Malaysia in respect of protection
of creditors and if so, whether the laws in the UK, New Zealand and
Australia are suitable to be adopted in their current form or after adaptation
taking into consideration the Malaysian context.
21 See comments by Gopal Sri Ram JCA in Owen Sim Liang Khui v Piasu Jaya Sdn Bhd & Anor
[1996] 1 MLJ 113 at 125-6.
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