Would bankruptcy bar Najib from specific activities under insolvency rules?

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Bankruptcy Declaration Would Preclude Najib Razak from Various Activities

A bankruptcy declaration against Datuk Seri Najib Razak would prevent him from participating in a range of activities and result in his assets being managed by the director-general of insolvency, according to arguments presented in court. This contention arises in the context of legal proceedings initiated by the Inland Revenue Board of Malaysia (LHDN) over substantial unpaid tax arrears.
Impact on Activities and Asset Control

Lawyers representing Najib Razak argued that a formal declaration of bankruptcy would impose significant restrictions on his ability to engage in various activities. Furthermore, such a declaration would lead to the forfeiture of his control over his personal assets. These assets would subsequently fall under the jurisdiction and management of the director-general of insolvency, a key consequence of bankruptcy proceedings under Malaysian law.
Legal Basis for LHDN's Action

The current legal challenges stem from LHDN's pursuit of bankruptcy action related to tax arrears assessed for the period between 2011 and 2017. The outstanding amount, initially RM1.46 billion, has reportedly increased to RM1.69 billion due to penalties and interest, relating to an alleged RM8 billion donation that Najib maintains was used for political and welfare purposes.
Court's Consideration of Stay Applications

The proceedings involve Najib Razak's ongoing challenge to two bankruptcy notices. His legal team had previously sought to stay these proceedings, arguing that the tax assessments were flawed and should not be enforced while related appeals were still active. However, the High Court dismissed these applications in November last year, affirming that pending appeals do not exempt taxpayers from recovery actions by LHDN. The Court of Appeal is expected to deliver its decision on September 4.

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Would bankruptcy bar Najib from specific activities under insolvency rules?

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