This is where the company is forced to wind up as it cannot settle its debts. This is a process forced through the courts. The law allows any creditor owed a debt of more than MYR 500 to send a demand note that should be payable within 21 days. If the demand note is not settled within this period, the creditor can invoke ‘Section 218 Notice’ simply known as ‘Section 218’ which comes from Section 218 of the Companies Act 1965. The creditor can then move to the court to have the company declared insolvent and forced to wind up.