The Director General of Insolvency (DGI) is a public servant, an officer of the Court appointed pursuant to Insolvency Act 1967 [Act 360] and conferred with wide powers and duties to administer the properties of a bankrupt. DGI too acts as an Official Receiver (OR) prescribed under Companies Act 2016 [Act 777] for administering company winding up cases, deregistered society and trade union in Malaysia.
DGI/OR may exercise the prescribed power of the Court and/or subject to any terms as the Court may impose.
The main functions of DGI are as follows :
- To supervise and monitor management of 21 state branches;
- To issue first notification of bankruptcy to relevant agencies;
- To administer and conduct initial investigates towards the bankrupt based on the statutory form filed by bankrupt;
- To act as a Manager and Receiver for the estate of the bankrupt;
- To summon and conduct the First Meeting of Creditors and General Meeting of Creditors;
- To realize the bankrupt's assets and properties for the interest of creditors who filed Proof of Debt;
- To examine, admit or reject partly or wholly the Proof of Debt;
- To declare and distribute dividend to the creditors;
- To process and consider the application and appeals of bankrupt under relevant provisions of Act 360;
- To consider the application of bankrupt using powers and discretion on such matters;
- To ensure bankrupt fulfil the terms and conditions imposed under Act 360;
- To report the conduct of bankrupt when the court directs;
- To investigate through Public Examination of the bankrupt; and
- To take part and give assistance as directed by the Public Prosecutor in relation to the prosecution of any fraudulent bankrupt or any other person charged under Act 360.
Furthermore, the main functions of OR are as follows :
- To administer the affairs of a wound up company;
- To take into custody or control all the property to which the company is or appears to be entitled;
- To exercise any other powers as provided for by the Companies Act 1965 [Act 125] / Companies Act 2016 [Act 777]; and
- To monitor the conduct of approved liquidator with respect to the administration of the affairs of winding up by the court.