Dynac Sdn Bhd

On the court record

A petitioner in insolvency proceedings to convert a voluntary liquidation into a compulsory winding up under section 464(2)(d) of the Companies Act 2016 to secure independent liquidators.

Dynac Sdn Bhd appears in the corpus within a group of insolvency proceedings concerning the conversion of a voluntary liquidation into a compulsory winding up, and its matters go to a specialised corner of company law. As a petitioner, alongside Globalmariner Offshore Services Sdn Bhd and Boomslang Technology Sdn Bhd (formerly Blackstone Technology Sdn Bhd), the company sought orders under section 464(1) read with sections 464(2)(d) and 465(1) of the Companies Act 2016 to convert the members' voluntary liquidation of a fabrication company into a court-ordered winding up, so as to facilitate the appointment of independent liquidators. The petitions engaged whether a creditors' voluntary liquidation could be continued with due regard to the interests of creditors, whether the court had a discretion to convert a voluntary liquidation to a compulsory one, and whether the interim liquidators lacked independence and impartiality.

The company also appears as an intervener in connected civil-procedure matters, where the court considered the withdrawal of an action under Order 21 rule 3 of the Rules of Court 2012 (formerly framed under the Rules of the High Court), asking whether the case had reached an advanced stage, whether the respondents were dominus litis, and whether any prejudice was caused by the withdrawal.

For a reader, the cluster is a useful study of the conversion jurisdiction under section 464(2)(d): the circumstances in which a voluntary liquidation will be displaced by a compulsory one to protect creditors and secure independent liquidators, and the procedural questions that attend the withdrawal of connected proceedings. The corporate parties are named as they appear on the record; any individuals are referred to by their procedural role only. The conversion jurisdiction the company invoked is a comparatively rare but important safeguard: it allows the court to displace a voluntary liquidation, chosen and controlled by the company or its members, with a compulsory one under independent liquidators where the creditors' interests require it. The connected withdrawal applications show the procedural skirmishing that typically precedes such a change of insolvency regime.