In 2025, Judicial Management (JM) stands as a cornerstone of Malaysia's significantly enhanced corporate rescue framework. Bolstered by the Companies (Amendment) Act 2024 and complemented by the new Cross-Border Insolvency Act 2025, JM under Section 405 of the Companies Act 2016 is now a more powerful, flexible, and internationally aligned tool for the rehabilitation of financially distressed companies.
Businesses facing insolvency can work with judicial management specialists to navigate court-supervised corporate rescue under enhanced 2024 provisions.
The Companies (Amendment) Act 2024 has introduced several crucial changes that strengthen the JM regime.
At its heart, JM is a court-supervised process that provides a financially distressed company with a moratorium on creditor actions, allowing an independent Judicial Manager to attempt to rehabilitate the company.
Upon the making of a JM order, an automatic moratorium comes into effect. This is one of the most powerful features of JM, as it prohibits the commencement or continuation of any legal proceedings against the company.
The Judicial Manager is a qualified insolvency practitioner who takes over the management of the company from its directors. Their primary duty is to the creditors as a whole.
For distressed companies, turnaround and recovery services can complement judicial management with cash flow management and operational restructuring.
Judicial Management in 2025 is a far more robust and versatile corporate rescue mechanism than ever before. The recent legislative amendments have addressed many of the previous limitations of the regime.
A 2025 guide to Judicial Management (JM) in Malaysia. Learn about the significant enhancements to this court-supervised corporate rescue mechanism under the Companies (Amendment) Act 2024, including expanded eligibility for public listed companies and \"super priority\" for rescue financing. This guide covers the application process, the two-limb test, the moratorium, and the role of the Judicial Manager in Malaysia's modernized insolvency landscape.