Malaysia Court of Appeal rules companies must be de-listed once winding-up order is made

30 August 2021

Bursa Malaysia Securities Berhad v Mohd Afrizan bin Husain (Appeal No. W-02(A)-696-06-2020)

The Malaysia Court of Appeal in Bursa Malaysia Securities Berhad v Mohd Afrizan bin Husain has ruled that once a winding-up order has been made against a public listed company, Bursa Malaysia Securities Berhad (“Bursa Malaysia”) must de-list that company from the stock exchange.

Rule 16.11(2)(d) of the ACE Market Listing Requirements provides that Bursa Malaysia must de-list a listed corporation upon a winding-up order being made against that listed corporation. Applying a literal and strict interpretation of Rule 16.11(2)(d), the appellate court held that it was clear that de-listing is mandatory once a winding-up order has been made, and that Bursa Malaysia did not have the discretion to maintain the company’s listing status in this instance, despite there being an ongoing challenge against the winding-up order.