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.
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
This update is further to the earlier High Court decision in Re Scomi Group Bhd which held that public listed companies cannot apply for judicial management.
Another public listed company, Dolomite Corporation Berhad, has also failed in its judicial management application.
On 8 March 2022, Dolomite announced that the Shah Alam High Court had dismissed its judicial management application. Among others, the Court held that public listed companies are not allowed to apply for judicial management pursuant to section 403(b) of the Companies Act 2016 i.e. being a company subject to the Capital Markets and Services Act 2007. Continue reading
Malaysia today begins its “Transition to Endemic” phase for COVID-19. As mentioned in an earlier update (Malaysia’s updated workplace COVID SOPs from 1 April 2022: Capacity and operating hour limits abolished), there will be only one Standard Operating Procedure (SOP) applicable nationwide for this new phase.
The National Security Council (NSC/MKN) has today released the new SOP and the following guidelines (all available at mysop.gov.my:
SOPs are enforced safety measures, with non-compliance punishable by fines. Meanwhile, the Guidelines serve to illustrate and expand on the requirements in the SOP, and compliance is only encouraged.
This article summarises some of the relevant SOPs and recommended best practices for workplaces generally from 1 April 2022. Business owners/operators and employers should still refer to the SOP document and any applicable guidelines for a comprehensive understanding of the requirements.
The English High Court in Tulip Trading Limited v Bitcoin Association for BSV and others [2022] EWHC 668 (Ch) dealt with interesting cryptocurrency legal issues. This was against a backdrop of a hack resulting in a loss of control of US$4.5 billion in bitcoins.
[UPDATE: Please refer to this article published on 1 April 2022 which has more up to date information: “Summary of new SOPs and guidelines for Malaysian workplaces from 1 April 2022”]
Malaysia’s Prime Minister announced on 8 March 2022 that Malaysia will begin the “Transition to Endemic” phase for COVID-19 from 1 April 2022 (Click for link to announcement, in Bahasa Malaysia).
