The High Court in Safari Alliance Sdn Bhd v Tan Lee Chin and others (grounds of judgment dated 25 August 2021) dealt with how a shareholder cannot maintain an oppression action against rulings made by the Chairperson at a general meeting. Such rulings do not amount to “affairs of the company” for oppression.
Wong Chee Chien writes a case update on when an admiralty claim trumps insolvency.
More often than not, a creditor with an admiralty claim would take steps to arrest a ship or vessel of the debtor, for the purposes of selling it so that the proceeds of sale will be held as pre-judgment security for the creditor.
However, if the debtor subsequently goes into liquidation, what happens to the proceeds of sale from the arrested vessel? Should the proceeds be paid to the creditor, or should they be distributed to all unsecured creditors pari passu? These issues were dealt with by the High Court in Dan Bunkering (Singapore) Pte Ltd v The Owners of the Ship or Vessel “PDZ Mewah” & Anor (see grounds of judgment dated 9 August 2021).
Although this decision deals with several issues, this case update focuses on the question of whether the creditor’s admiralty claim trumps the insolvency regime of pari passu distribution among unsecured creditors. Continue reading
Starting from 1 April 2021, the threshold for the issuance of a winding up statutory demand is now fixed at RM50,000.00.
Through this gazette notice (GN No. 4159), the Minister has set this prescribed amount. This is consistent with the powers of the Minister under section 466(1)(a) of the Companies Act 2016 to prescribe the minimum amount of indebtedness for the issuance of a statutory demand for winding up.
The Court of Appeal in its grounds of judgment dated 18 March 2021 in Sunrise Megaway Sdn Bhd (in liquidation) v Kathryn Ma Wai Fong set out the principles when there is a challenge on a liquidator’s decision to admit or reject a proof of debt. Exceptional circumstances are required to second guess the liquidator’s decision.
On Tuesday 23 March 2021, I will be one of the co-speakers at the forum held in conjunction with the virtual book launch of CLJ’s Company Meetings, Minutes and Resolutions in Malaysia. Delighted to see the launch of this book written by Kenneth Foo Poh Khean and Leong Oi Wah.
The book covers essential requirements, rules and principles in company meetings, minutes and resolutions. This book provides two dimensions in the areas of meetings, minutes and resolutions from the legal perspective and the practical insights supported by examples, legal precedents and explanations.