Eyza Farizan Mokhtar examines a fight over the
appointment of a provisional liquidator
Can a company hasten its impending death by committing suicide?
While awaiting death, can a company choose its own executioner?
These were the issues faced by the High Court in Malayan
Banking Berhad v Chip Lam Seng Enterprise Berhad [2014] 1 LNS
1583.
On 27 October 2014, the High Court decided that the Respondent
could not avoid a compulsory winding up by undertaking a voluntary
winding up. In coming to its decision, the High Court also
discussed the court's power to appoint a provisional liquidator
pending the disposal of a winding up petition.
THE DEATH SENTENCE
The Respondent, Chip Lam Seng Enterprise Berhad, is the holding
company of the "Chip Lam Seng" group of companies
("CLS Group"), a family business controlled by one Mr.
Tan Keng Beng ("TKB").
