The Director General of Insolvency (DGI) heads the Department of Insolvency and is the designated government official in the administration of bankruptcy in Malaysia. This encompasses the administration of the estate of the bankrupt as well as the conduct of the debtor.
The DGI also acts as the Official Receiver (OR) in which he administers companies wound up by the court either as a provisional liquidator or a liquidator, where private-sector insolvency practitioner is not appointed.
This dual role requires utmost responsibility to uphold the laws and serve the interests of the public. As such, the appointment of the DGI shall be from among members of the Judicial and Legal Service.
In relation to bankruptcies, the DGI performs the following roles:
- Administers and investigates the affairs of bankrupts and reports of any misconducts;
- Acts as receiver of the debtor's estate and a manager where no special manager has been appointed thereon;
- Makes reports regarding the conduct of the debtor as and when the courts directs;
- Takes part in the public examination of the debtor as directed by the Court;
- Takes part and gives assistance as directed by the Public Prosecutor in relation to the prosecution of any fraudulent debtor or any other person charged under the Bankruptcy Act 1967;
- Raises money or authorizes the special manager to raise money for purposes of the estate in any case whenever it appears necessary to do so in the interest of the creditors; and
- Summons and presides at all creditor's meeting held in accordance with the Bankruptcy Act 1967.
- Reports to the creditors of any recommendations made by the debtor in respect of the settlement of his affairs.
- Issues the forms of proxy to be used at the creditors’ meeting.
- Advertises the receiving order, the date of public examination and other matters which are required to be advertised.
In relation to winding-up, the DGI in his capacity as the OR performs the following roles:
- administers and investigates the affairs of companies and partnerships wound up by the court;
- act as trustee/liquidator where are no private sector insolvency practitioner is appointed;
- take forward reports of directors' misconduct;
- is responsible for protecting the assets of the insolvent company and will take immediate steps to collect or secure any assets or property of the company; and
- supervises the conduct of any private sector insolvency practitioner appointed as liquidator of a wound up company