Articles

INTEREST SCHEMES IN MALAYSIA Interest schemes in Malaysia are regulated by the Interest Scheme Act 2016 (“ISA 2016”). Introduced alongside the new Companies Act 2016 (“CA 2016”), the ISA 2016 was originally under Division 5 of the preceding Companies Act 1965 and was...

FUNDAMENTALS OF STAY OF PROCEEDINGS UNDER SECTION 10 OF THE ARBITRATION ACT 2005 In this article we will discuss a few fundamentals on the stay of proceeding for arbitration. We will also discuss the case of Channel Tunnel Group Ltd v Balfour Beatty Construction Ltd...

Pure Economic Loss In Construction Defects: The Malaysian Perspective Introduction Before we go into the substance of the aforementioned subject hereinbelow, it is important to first understand what is means by “pure economic loss”. In this respect, the Federal Court...

INTRODUCTION Assignment is an effective instrument of security and is widely used by financial service providers as a form of security towards facilities provided to their customers. There are two types of assignments. Legal assignment and Equitable assignment. A...

Financing By Co-operatives In Malaysia: Frequently Asked Questions Introduction Thinking of starting a co-operative in Malaysia to offer financing solutions but unsure where to begin? This article covers the basics of co-operatives in Malaysia, answering common...

National Guidelines on AI Governance and Ethics: Everything You Need to Know As the digital landscape evolves, artificial intelligence (AI) emerges as a transformative force across industries, influencing everything from healthcare to finance and even entertainment....

Forest City Special Financial Zone : Everything You Need to Know Introduction Once an ambitious real estate venture, Forest City is now the cornerstone of a revitalisation plan. On 20 September 2024, via the Keynote Address at the Forest City Special Financial Zone...

Understanding Freezing and Seizure Orders under AMLATFPUAA 2001 Within the purview of Section 44 of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLATFPUAA)1, the issuance of a freezing order by an enforcement...

New Regulatory Framework for Internet Messaging Service and Social Media Service Providers – Creating safer online environment and protecting individuals online  In the wake of Malaysian Tik Tok influencer, Esha’s tragic death linked to online harassments and death...

CAN A BORROWER ESCAPE REPAYMENT OF AN OUTSTANDING LOAN IF THE BANK BREACHES THE LOAN AGREEMENT OR FACILITY AGREEMENT? INTRODUCTION Can a borrower escape repayment of an outstanding loan if the bank breaches the loan agreement or facility agreement? This issue was...

The Federal Court in Tan Lay Peng (in her capacity as the administratrix of the estate of Tan Leong Huat) v. RHB Bank Berhad had unanimously reaffirmed that the "contract test" is the proper standard for evaluating claims of constructive dismissal.[1]  BRIEF...

In a world where social media is a powerful digital marketing tool, to stand out and establish a strong brand presence is important. Franchising and licensing are two business models utilising commercial contracts that allow the sharing of specific brand elements in...

Introduction  In Malaysia, the tradition of confinement, or pantang, is a deeply rooted aspect of postpartum care, providing new mothers with specialized attention to support their recovery after giving birth. With the growing demand for such care, confinement centres...

• Introduction The Construction Industry Payment & Adjudication Act 2012 (“CIPAA”) introduces a significant shift in handling unpaid claims by allowing Subcontractor to pursue direct payment from the Principal, even in the absence of a direct contractual...

Introduction The Malaysian Federal Court's landmark decision in Ang Ming Lee & Ors v Menteri Kesejahteraan Bandar, Perumahan Dan Kerajaan Tempatan & Anor And Other Appeals[1] ("Ang Ming Lee") has profoundly impacted the legal landscape concerning housing...

A. INTRODUCTION: The Respondent, Concrete Parade Sdn Bhd (“Concrete Parade”) filed an oppression claim against Apex Equity Holdings Berhad (“Apex”) and its directors, challenging a proposed merger, a private placement of shares, and share buy-back transactions under...

Introduction to the Digital Era The rapid evolution of Information and Communications Technology (ICT) has propelled the world into a digital age where technologies such as mobile, social media, Big Data, Internet of Things (IoT), Artificial Intelligence (AI), and...

Ever thought that you could own a Picasso painting? Welcome to the world of tokenisation! With advancements in blockchain technology, it is now possible to digitize physical assets and break them down into digital tokens, enabling anyone to invest in or own a share of...

Last year, our Associate, Aryn Rozali has shared a comprehensive article on ‘General Overview on PDPA Compliance in Malaysia’. In that piece, Aryn highlighted the anticipated amendments to the Personal Data Protection Act 2010 (“PDPA”), and today we are thrilled to...

AIAC Fast Track Arbitration Rules The AIAC (Asian International Arbitration Centre) Fast Track Arbitration Rules are designed to provide a streamlined arbitration process for parties seeking to resolve disputes quickly and efficiently. These rules are tailored to...

With the advancement of technology and the widespread use of the internet in all walks of life, there is an unfortunate increase of risk and exposure to online scams. Online scams are activities where computers or network equipment are used as mediums to commit...

Introduction Artificial Intelligence (AI) represents a pivotal technological advancement capable of autonomously analysing environments and executing actions to achieve specific objectives.[1] Essentially, AI refers to the technology that enables machines to perform...

In the recent years, Malaysia has intensified its efforts in combating corporate corruption, culminating in the introduction of Section 17A into the Malaysian Anti-Corruption Commission (MACC) Act through an amendment in 2018. This significant legal development, which...

CASE REVIEW: JULIAN CHONG SOOK KEOK & ANOR v. LEE KIM NOOR & ANOR In the realm of professional negligence, particularly in legal matters, the concept of limitation plays a crucial role in determining when a claim ought to be commenced. The Limitation Act 1953...

After obtaining an adjudication decision, a sequence known as the ‘CIPAA Trilogy E-S-S’ typically ensues – Enforcement, Setting aside and Stay applications. Typically, the party that receives a favourable adjudication decision will seek to enforce the decision if the...

Introduction Can legal fees be claimed as special damages? In the recent Federal Court ruling in Golden Star & Ors v Ling Peek Hoe & Anor and another appeal [2024] MLJU 909, the court addressed whether expenses such as litigation costs, legal charges, and fees...

An EPC (engineering, procurement and construction) contract is a contract between a project owner and an EPC contractor where the EPC contractor is responsible for all the activities from design, procurement, construction, commissioning and handover of the project to...

The Concept of Derivative Action The fundamental concept of corporate personality delineates a company as a legal person, separate from its members and directors. This means that a company possesses its own set of rights and obligations, enabling it to initiate legal...

Introduction The Companies (Amendment) Act 2024 ("CA 2024") was enforced on 1 April 2024 addresses a number of areas regarding the corporate governance framework and corporate rescue mechanism. This article will focus on the discussion on of the amendment which is the...

In the intricate landscape of employment law, few concepts are as nuanced and potentially contentious as constructive dismissal. Constructive dismissal refers to a situation where an employee resigns from their job due to fundamental breaches of their employment...

Congratulations on obtaining a favourable Adjudication Decision under the Construction Industry Payment and Adjudication Act 2012 (CIPAA)! As the Winning Party, you now have several avenues to securing the adjudicated amount. Let’s explore the steps and options...

In contemporary agreements, it has become customary for parties to include arbitration clauses without fully comprehending the financial implications. Consequently, they often find themselves facing unexpectedly high costs associated with arbitration proceedings,...

In Malaysia, capital markets are regulated and developed by the Securities Commission (“SC”) under the Securities Commission Act 1993 (“SCA”). As outlined in the Capital Markets and Services Act 2007 (“CMSA”), 'securities' encompass various forms such as debentures,...

Introduction to Labuan Foundation for Corporations Labuan, widely known to be of an offshore jurisdiction offers companies an opportunity under the Labuan Foundations Act 2010 (“LFA”) to independently hold assets under its own name as registered body corporate with...

Introduction Money lending is the act of lending of money at interest, with or without security, from a lender to a borrower[1]. In Malaysia, the money lending business is especially regulated by the Moneylenders Act 1951 (‘Act’) subject to the exception provided...

Introduction The rapid development of digital currency/token as a form of investment, mode of payment and now entertainment has forced the government in every country to develop a regulatory framework in order to provide layers of protection and accountability for the...

WHAT IS A RECONSTRUCTION? A reconstruction is a scheme formulated by companies that held by substantially the same shareholders wherein the former company’s business and undertakings will be transferred and carried out by the new company. As stated by Buckley J in the...

Introduction Although the law of negligence is not something foreign to the legal fraternity, the tests or principles to conclude a tortious act has been evolving throughout time. In the majority of tort cases, one of the determinations on whether a defendant is...

A reduction of capital occurs where a company reduces the amount of its share capital. Under the Malaysia Companies Act 2016 (‘Act’), the Act provides two methods for companies to execute its scheme of capital reduction. This is an addition from the previous Companies...

On 21 March 2022, the Dewan Rakyat has taken a further step in passing the Employment (Amendment) Bill 2022 (‘Bill’) to amend the Employment Act 1955 (‘EA 1955’). The said Bill was passed in Dewan Negara on 30 March 2022 and assented on 26 April 2022 and gazetted as...

United Kingdom Brief Facts: In the case of AA v Persons Unknown [2019] EWHC 3556 (Comm), the Commercial Court in the UK granted an interim proprietary injunction on Bitcoin. It was later confirmed that Bitcoin, a form of cryptocurrency is considered as property. In...

Introduction According to Goff & Jones (2011) the law of unjust enrichment is concerned with the transfers of value between claimants and defendants. It is a cause of action to which a third category of remedy, i.e., the restitution remedy is available for the...

INTRODUCTION It goes without saying. Employees are an asset to a company and is the most crucial one in carrying out a business. To ensure continuous growth and development, companies realize the need to gain employee loyalty and to retain them. However, in today’s...

Introduction Equity fundraising is a method that can be used by Private Limited Companies (known as Sendirian Berhad or Sdn. Bhd.) in Malaysia to raise funds from potential investors for the purpose of the company’s expansion or survival. Through equity fundraising, a...

Introduction: In these changing times when financial assets can be so easily and speedily moved to different parts of the world, with the growth in the use of offshore companies and the growth of international litigation and arbitration, freezing injunctions (or...

INTRODUCTION On 22 December 2021, the Minister in the Prime Minister’s Department (Parliament and Law) Datuk Seri Dr Wan Junaidi Tuanku Jaafar has informed that Part II (Inability to Perform Contractual Obligations) of the Temporary Measures to Reduce the Impact of...

Introduction The Hire Purchase Act 1967 (herein after referred to as “HPA”) is commonly used for the purpose of sale and purchase of motor cycle and car. Hire Purchase is the hiring of goods with the option to buy the goods at the end of the hire purchase term....

In Malaysia, money services business is governed under the Money Services Business Act 2011 (“MSBA 2011”) which provides licensing, regulations and supervisions of money services business. According to Section 2 of the MSBA 2011, money service business refers to...

In Malaysia, Large Scale Solar (“LSS”) is a competitive bidding programme by the Energy Commission to drive down the Levelized Cost of Energy (“LCOE”) for the development of large scale solar photovoltaic plant. Through the LSS scheme, the LSS developers...

In the past few months, we have seen prices of cryptocurrency in particularly Bitcoin grew significantly within a short period of time. Bitcoin was the first decentralized digital currency created in 2009 by Satoshi Nakamoto on the basis of open-source software. It...

Understanding Limited Liability Partnership (LLP) in Malaysia Limited Liability Partnership (“LLP”) is a new corporate vehicle introduced by the enactment of Limited Liability Partnerships Act 2012. LLP combines the features and benefits of a private limited company...

Due to the pandemic, times are challenging for some business owners. Temporary closing on businesses, enforcement of Force Majeure in contracts and delay in payments have caused major setbacks and, in many instances,, crippled businesses. Companies need positive cash...

With recent announcement by the Government of Malaysia on the execution of Large Scale Solar 4 program, every companies that involve directly with solar and renewable energy are busy looking into suitable land for leasing as well as structuring their bidding...

WHAT IS DUE DILIGENCE? Due diligence has no legal definition. However, according to Merriam Webster, due diligence in a business is a research and analysis of a company or organization done in preparation for a business transaction (such as corporate merger or...