Atan Mustaffa Yussof Ahmad J:

[1] Before the court is an application by the directors of a company under Creditors' Voluntary Liquidation, seeking determination of whether they retain "residual powers" to oppose a petition that would convert the voluntary liquidation to a court-supervised one. The application raises fundamental questions about the scope of directors' authority following the commencement of liquidation proceedings, particularly where the company is already under the control of a court-appointed Interim Liquidator. Central to this dispute is the directors' contention that despite having initiated the voluntary liquidation process, they retain residual powers to oppose the conversion petition, a position vigorously contested by the petitioning creditors who argue that such powers ceased upon the commencement of liquidation.

Salient Facts Of The Case

[2] The Respondent, TH Heavy Engineering Berhad, is a company that was classified as PN17 on 28 April 2017 and was ultimately delisted by Bursa Malaysia on 5 September 2022 after failing to present a regularisation plan to address its PN17 status.

[3] On 8 September 2023, the Respondent, acting through its Board of Dir