New indebtedness threshold a blessing for SMEs

SINCE April 1, the Companies Commission of Malaysia (SSM) has permanently raised the indebtedness Threshold of companies from RM10,000 to RM50,000 to help them remain in business. The new threshold is helping companies as there was a reduction in the numbers of winding-up petitions submitted to SSM from April to December last year,with 665 compared with 1,760 in 2019. Companies can be dissolved by striking off their name from the register of company by SSM and through a winding-up or liquidation process. Winding up can be effected voluntarily, either by members or creditors, and by the court. Companies’ properties are administered for the benefit of members and creditors.