Inns of Court Malaysia Webinar: Judicial Management and Corporate Rescue

The Inns of Court Malaysia will be holding another instalment of its flagship event, the ICM Legal Education Series. This webinar is on Friday 22 July 2022 at 4pm. Registration is required. The event is free for Inns of Court Malaysia members and RM50 for non-members.

This talk is titled Judicial Management and Corporate Rescue: Balancing the Rescue of Distressed Companies and the Rights of Creditors.

You may download the poster for email registration or sign up via the Google Forms link. Continue reading

Case Update: Court of Appeal Rules Against Scomi Group Judicial Management Appeal

Today, the Court of Appeal dismissed Scomi Group Bhd’s appeal against the High Court decision dismissing its judicial management application.

As set out earlier, the High Court had ruled on two points when dismissing the judicial management application of Scomi Group Bhd, being a listed company. Continue reading

Confirmed: New Minimum Wages Order effective 1 May 2022; employers with less than 5 employees exempted

The widely-anticipated Minimum Wages Order 2022 (“the Order”) was gazetted on 27 April 2022. The Order, pursuant to section 23 of the National Wages Consultative Council Act 2011, increases the minimum wage nationwide to RM1,500 from 1 May 2022. There is a temporary exemption until 31 December 2022 from the increase for employers with less than five employees.

Further details of the Order are set out below.

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Case Update: Court Can Grant Interim Measures against Non-Parties to Arbitration

The High Court in Padda Gurtaj Singh and others v Axiata Group Berhad and others (grounds of judgment dated 29 March 2022) granted an interim measure in the form of an injunction against Axiata Group Berhad, a non-party to an arbitration agreement. This was pending the arbitration between the parties to an arbitration agreement.

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Case Update: Liquidator Cannot Grant Sanction for Continuation of Litigation

The High Court in Small Medium Enterprise Development Bank Malaysia Berhad v Oren Venture Sdn Bhd and 3 others (grounds of judgment dated 4 March 2022) decided on the liquidator granting sanction for legal proceedings.

The crucial issue before the Court was whether a liquidator of a wound-up company can issue a sanction, or delegate to another person, the liquidator’s power to bring or defend any action or other legal proceedings in the name and on behalf of the company.

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Case Update: Federal Court Decides On Duty of Liquidator of a Wound-up Listed Company

Nathalie Ker writes an update on the Federal Court decision on the duties of a liquidator of a listed company.

The Federal Court has now issued its grounds of judgment (dated 31 March 2022) allowing the appeal of Bursa Malaysia Securities Berhad (Bursa) in Bursa Malaysia Securities Berhad v Mohd Afrizan bin Husain (Appeal No.: 02(f)-39-07/2021(W)). The grounds of judgment may be found here. The Federal Court reversed the earlier Court of Appeal decision.

The Court addressed two main issues. First, whether Bursa was obliged to immediately delist a listed company upon the company being served with a winding up order (pursuant to Rule 16.11(2) of the ACE Market Listing Requirements (AMLR)). Second, the duty of a liquidator as the person in control of the management of a listed corporation to ensure compliance with the Listing Requirements. Continue reading