The High Court case of ReLeadmont Development Sdn Bhd  MLJU 1320;  1 LNS 1420 is the first decision on judicial management in Malaysia.
Judicial management orders were granted ex parte for two related companies, Leadmont Development Sdn Bhd (“Leadmont”) and its subsidiary Sierra Delima Sdn Bhd (“Sierra Delima”). The judicial management orders were to facilitate the rehabilitation of these two companies. The companies wanted to successfully complete their project, the Selayang StarCity Project. A secured creditor of the companies, Infra Segi Sdn Bhd (“Infra Segi”), intervened after the grant of the judicial management orders to set aside the orders.
The decision is important for setting out the background and statutory framework of the judicial management provisions in Malaysia. It spells out the test for the grant of a judicial management order. The Court ultimately exercised its inherent jurisdiction to set aside the earlier judicial management orders. Continue reading →
The High Court decision in Majlis Amanah Rakyat (MARA) v Dato’ Abd Rahim Adb Halim & Ors 8 CLJ 738;  MLJU 1008 touched on some important points on the appointment of directors. It is also the first decision to briefly deal with the new right of management review under section 195 of the Companies Act 2016 (CA 2016).
This dispute arose from the boardroom and shareholder tussle where MARA had requisitioned for an EGM of the company, Med-Bumikar. Med-Bumikar held a substantial stake in the listed entity, MBM Resources Bhd (MBMR). UMW had tabled an offer to purchase Med-Bumikar’s stake in MBMR. The crown jewel at the heart of the dispute was essentially MBMR’s 20% stake in Perodua. UMW already had approximately 38% interest in Perodua and this would allow UMW to have control over Perodua. Continue reading →
The Companies Commission of Malaysia, or Suruhanjaya Syarikat Malaysia (SSM), will be bringing into force the last remaining provision of the Companies Act 2016 (CA 2016). This is section 241 of the CA 2016 on the requirement for all company secretaries to register with SSM. SSM will issue practising certificates to all company secretaries.
About two weeks ago, I had a pre-recorded interview with BFM to share my views on the new Companies Bill 2015.
This morning, the segment was aired as part of its Current Affairs series. You can click on to the podcast.
I generally shared why the new changes are to be welcomed and I traced the long process to arrive where we are at. On the one hand, we adopted the best practices from other jurisdictions. However, I also shared my personal thoughts on certain areas where we could have improved further. Finally, I shared how the different segments of the industry may be worried about the unknown and of the new.
The Malaysian startup scene has noticeably increased in vibrancy in the past couple of years. Many of us have friends or relatives who are somehow involved in the startup scene — either as founders or investors.
An increasing number of people — young and not-so-young, and some lawyers too — are moving away from traditional career paths and joining the startup ecosystem.