Rehabilitation of abandoned housing projects of housing developer companies under receivership in Peninsular Malaysia: Some salient issues and suggestions
Abandoned housing projects are one of the main problems in the housing industry in Peninsular Malaysia.Even though the Malaysian government has provided laws and policies to govern the housing industry to protect the interests of all parties in the industry, yet the problem of abandoned housing pr...
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| Main Author: | |
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| Format: | Article |
| Language: | English |
| Published: |
Sweet & Maxwell Asia
2012
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| Subjects: | |
| Online Access: | http://repo.uum.edu.my/11893/1/10.pdf http://repo.uum.edu.my/11893/ |
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| Institution: | Universiti Utara Malaysia |
| Language: | English |
| Summary: | Abandoned housing projects are one of the main
problems in the housing industry in Peninsular Malaysia.Even though the Malaysian government has provided laws and policies to govern the housing industry to protect the interests of all parties in the industry, yet
the problem of abandoned housing projects is still an unsettled issue until today.The real victims are the purchasers themselves.Usually
when a housing developer company is under receivership, the affairs and business of the
company are taken over by the appointed receiver and manager, pursuant to the terms in the deed of debentures. The receiver and manager may rehabilitate the abandoned projects left by the housing developer companies, if the projects are viable for
rehabilitation, with the approval of the debenture holders.Otherwise,if the project is not viable, particularly because there are insufficient funds to run the intended rehabilitation or the problems relating to
the abandoned housing projects are too great to settle, the project may be stalled forever
without any prospect for rehabilitation, to
the detriment of the purchasers.This article discusses the law and practice in the rehabilitation of abandoned housing projects in Peninsular Malaysia of the housing developer companies, under receivership.This
writing finds that there are certain lacunae in
the law and practice in dealing with
the problems of abandoned housing projects particularly in respect of rehabilitating
the projects and protecting the purchasers' rights and interests.Further, it is submitted that the recent proposed amendments to the Housing Development (Control and Licensing Act 1966 (Act 118) and the Corporate Law Reform Committee's ("CLRC" recommendations also are still inadequate to face the problems
of abandoned housing projects.In the final part of this article the author proposes certain suggestions for facing the problems
of abandoned housing projects of the housing developer companies under receivership and their rehabilitation in Peninsular Malaysia in order to improve the law and practice
regulating housing industry against abandonment of housing projects in Peninsula Malaysia. |
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