Lee Shih

Companies Act 2016: The New Dynamics of Company Law in Malaysia

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I have been working hard over the last few months writing my book, ‘Companies Act 2016: The New Dynamics of Company Law in Malaysia‘. The process was tiring but very rewarding. It was a culmination of my 10-over years of experience in company law.

My co-author is Kenneth Foo, an experienced Chartered Company Secretary. In this book, we have combined our experience in company law, company secretarial, compliance and insolvency practice. The book will be officially launched at an event on 24 January 2017. Read below for more information.

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The New Bankruptcy Amendment Act: The 10 Changes to Bankruptcy Law in Malaysia

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On 21 November 2016, the new Bankruptcy (Amendment) Bill 2016 was tabled in Parliament for its First Reading. It has now been passed as the Bankruptcy (Amendment) Act 2017 and received Royal Assent on 10 May 2017. By way of the gazette notification P.U. (B) 466/2017 dated 3 October 2017, these amendments will come into force on 6 October 2017.

The new Bankruptcy Amendment Act will bring about significant changes to Malaysia’s bankruptcy laws. This comes against a backdrop of rising bankruptcy cases, especially for individuals under the age of 35.

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I set out below the 10 major changes to be ushered in under the Bankruptcy Amendment Act. In summary, it can be seen that the new Bankruptcy Amendment Act is more borrower-friendly and will make it more difficult for creditors to commence and maintain bankruptcy proceedings.

I have also subsequently written on How the New Bankruptcy Amendments will Affect Existing Bankruptcy Matters.

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Companies Act 2016: Small Companies Do Not Need Auditors

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Under the Companies Act 2016, it appears that dormant companies and small private companies will no longer need to appoint auditors. This audit exemption will allow startups and SMEs to enjoy further cost savings in the running of their businesses.

Allowing for audit exemption also brings Malaysia in line with practices in other countries like the UK, Australia and Singapore.

[edit: The Companies Commission of Malaysia has now published the feedback it has received on the public consultation on the proposed audit exemption. I have written about it here.]

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Image from NY – http://nyphotographic.com

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Companies Act 2016: Coming into Force First Quarter 2017

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At the MIA International Accountants Conference 2016 today, I spoke on panel session on the Companies Act 2016.

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The speaker from the Companies Commission of Malaysia (CCM) announced that the new Act will be brought into force in the first quarter of 2017, except for the provisions on the two new corporate rescue mechanisms of corporate voluntary arrangement (CVA) and judicial management (JM). Time is needed for the subsidiary legislation for CVA and JM to be drafted and approved by the Rules Committee under the Courts of Judicature Act 1964. The target would be for CVA and JM to be brought into force before the end of 2017.

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The Legal 500 Asia Pacific 2017 released

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The Legal 500 Asia Pacific 2017 rankings were released on 9 November 2016.

The Legal 500 directory is widely viewed as the most prestigious legal rankings in the world, as the recommendations are based on work done, and feedback from clients and other lawyers worldwide.

The Malaysia section is divided into 13 sections, and the following is an excerpt of The Legal 500’s overview:

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A Sea Change: How Hanjin’s Cross-Border Insolvency May Dock in Malaysia

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My article published in The Malaysian Reserve on 27 October 2016.

tmr1Background

At the end of August 2016, one of the world’s largest container shipping companies, Hanjin Shipping Co Ltd, filed for rehabilitation proceedings at the Korean Bankruptcy Court. The Korean Bankruptcy Court granted provisional orders to preserve Hanjin’s assets.

There was immediate chaos. Around the world, some of Hanjin’s vessels in ports were seized while other vessels were stranded out at sea for fear of being seized.

To aid the rehabilitation proceedings in South Korea, it has been reported that Hanjin will seek court protection from more than 40 countries to preserve Hanjin’s assets.

Against this backdrop, I set out the ongoing legal developments in such a cross-border insolvency scenario and how these developments may affect Malaysia.

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Credit: Nsandel at English Wikipedia

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