company law

Case Update: Federal Court Decides that Restraining Order Can be Applied Without Notice

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The Federal Court in Mansion Properties Sdn Bhd v  Sham Chin Yen & Ors [2021] 1 MLJ 527 (see the grounds of judgment dated 24 November 2020) held that the application for a restraining order in a scheme of arrangement can be made ex parte (without notice).

This makes it advantageous for a distressed company to seek urgent moratorium protection through a restraining order. The distressed company can then pursue the debt restructuring in a scheme of arrangement and to have stability.

The Federal Court reversed the Court of Appeal decision. I had covered the Court of Appeal decision in an earlier post. Continue reading →

Judicial Management Statistics in Malaysia

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On 26 and 27 October 2020, I spoke at the two-day webinar organised by the Companies Commission of Malaysia Training Academy. I was joined by Norhaslinda Salleh of the Companies Commission of Malaysia, Khoo Poh Poh of Ernst & Young and Jimmy Ng of Chooi & Co + Cheang & Ariff.

We covered a range of restructuring and insolvency topics. There were some interesting facts shared as well. Continue reading →

Case Update: The Interim Judicial Manager to Protect Assets in Jeopardy

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Lee Shih and Huey Lynn write about the Singapore decision on the appointment of interim judicial managers.

The Singapore High Court in Re KS Energy Ltd and another matter [2020] SGHC 198 granted an order for the appointment of interim judicial managers (IJM) over two companies upon the application by a creditor.

This decision is useful in setting out the principles for the appointment of interim judicial managers. This decision is also persuasive for Malaysian law as Malaysia’s judicial management provisions are modelled after Singapore. Continue reading →

Case Update: Simultaneous Resignation and Appointment of Director

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The High Court case of Afandi bin Hussain v Global Advanced Broadband Solutions (M) Sdn Bhd & 3 others (grounds of judgment dated 23 September 2020) dealt with the company law issue concerning resignation and appointment of directors. While the decision dealt with other facts, I only focus on the issue concerning the simultaneous resignation and appointment of a director. Continue reading →

Case Update: Biaxis Decision – Stringent Requirements for a Judicial Management Application

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The High Court decision of Re Biaxis (M) Sdn Bhd [2020] MLJU 1188 (grounds of judgment dated 12 August 2020) set stringent requirements for a company to successfully apply for judicial management. These requirements may set an unnecessarily high bar for a distressed company to meet. Continue reading →

Case Update: Board Meeting Notice Need Not Contain Full Details of the Business of the Meeting

The Malaysian LawyerLeave a comment

Joyce Lim writes an update on a High Court decision on how the notice of a Board meeting need not contain the particulars of the business to be transacted at that meeting

The High Court in the recent case of Rozilawati binti Haji Basir v Nationwide Express Holdings Berhad & Ors [2020] MLJU 1198 (see the grounds of judgment dated 18 August 2020) dealt with two issues relating to the Board meeting requirements for companies.

Continue reading →