The company I am suing has been wound up. Can I still continue my claim?

You have a claim running against a company, or you are about to file one, and you learn that it has been wound up. Your case does not simply disappear, but the rules change.

The automatic stay

When a winding-up order has been made, or an interim liquidator appointed, no action or proceeding may be continued or started against the company except with the court's leave and on its terms (section 471(1)). Even before an order, once a petition is presented, the company, a creditor or a contributory may ask the court to stay pending actions (section 470).

Applying for leave

The application is made in the court that made the winding-up order and must be served on the liquidator (section 471(2)). An office copy of the order for leave is lodged with the Registrar and the Official Receiver within 14 days (section 471(3)).

Leave is more likely where the claim cannot sensibly be dealt with through the proof of debt process, for example where:

• the claim is for unliquidated damages and an insurer may be liable to pay;
• the claim concerns specific property you say is yours, not the company's; or
• the case is nearly finished and needs a decision.

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Proving your debt instead

For ordinary debts, the usual route is to file a proof of debt with the liquidator, often the Official Receiver at the Malaysian Department of Insolvency (MdI), with supporting documents. The liquidator admits or rejects it, and decisions can be challenged.

Important limits:

• Unliquidated damages arising otherwise than by contract, promise or breach of trust, such as most tort claims, are not provable in the winding up (section 523(1)).
• Debts contracted after you had notice of the winding-up order are not provable (section 523(2)).
• Unsecured creditors are paid after winding-up costs and statutory priority debts such as certain wages (section 527).

Other routes to recovery

• Guarantors: a personal guarantor of the company's debt can still be sued; see personal guarantors.
• Insurers: in accident claims, the insurer's position should be checked.
• Directors: in limited cases, such as fraudulent trading, directors may be personally liable; see director liability.
• Preferences: payments to other creditors in the six months before the petition may be challenged by the liquidator as undue preferences (section 528).

Example

A Kajang worker injured by a company lorry has a pending claim when the company is wound up. Because the claim is for damages in tort and the vehicle was insured, his lawyers apply for leave under section 471 to continue so that a judgment can be obtained for the insurer to satisfy.

Common mistakes

• Continuing the case without leave.
• Assuming every claim can be proved in the liquidation.
• Forgetting to check for guarantors and insurers.
• Missing the liquidator's deadlines for proofs.

When to speak to a lawyer

As soon as you learn the company is in liquidation. See civil litigation, our debt recovery guide or contact us.

Frequently asked questions

Can I enforce a judgment I already have?

Execution against the company's assets after the petition is generally void (section 472(3)). You will usually prove the judgment debt instead.

Who is the liquidator?

Often the Official Receiver, or a private liquidator appointed by the court or creditors. The winding-up order will say.

Can the winding up be reversed?

The court has power to stay the winding up in some situations. That is a separate application.

Sources & fact check

Legal points in this article were checked against the primary sources below. The law can change; this is general information, not legal advice.

1. Companies Act 2016 (Act 777), AGC Laws of Malaysia
2. Malaysian Department of Insolvency (MdI): Corporate insolvency and winding up (Companies Act 2016 s.466(1)(a))
3. Rules of Court 2012 (P.U.(A) 205/2012), text published by the Malaysian Bar, including Orders 12, 13, 18, 19 and 93

Fact-checked on 17 Oct 2026