Case Update: Restraining Order Extended to Guarantor Company and Sanction of Scheme of Arrangement

The High Court in the case of Re Sentoria Bina Sdn Bhd (grounds of judgment dated 9 July 2021) dealt with scheme of arrangement issues. First, that a restraining order could extend to the corporate guarantor of the applicant’s company. Second, the case dealt with the principles for sanction of a scheme of arrangement.

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Malaysia Insolvency Conference 2021: Legal and Practical Trends

Today was the second day of the Malaysia Insolvency Conference 2021. I had a very engaging session with my fellow speakers, Alex Chiang of Rodgers Reidy and Eddie Goh of Deloitte. The session was titled Lessons from Recent Landmark Cases. The session was a blend of practical issues and legal changes from recent court decisions.

At the session, I promised to set out a summary of the cases and legal principles I referred to. I set them out here.

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Case Update: Mandatory for Bursa Malaysia to De-List a Wound Up Company

The Court of Appeal in Bursa Malaysia Securities Berhad v Mohd Afrizan bin Husain (grounds of judgment dated 2 July 2021) ruled that once a winding up order was made against a public listed company, Bursa Malaysia must de-list that company from the stock exchange.

The case dealt with interesting issues between the interplay of a liquidator’s role under the Companies Act and where the liquidated company is also subject to Bursa Malaysia’s Listing Requirement.

The Federal Court has granted leave to appeal against this Court of Appeal decision.

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Barrister Chambers Takes Out Persons Unknown Injunction against Hackers

The barrister chambers of 4 New Square have obtained a persons unknown injunction against the unknown hackers who engaged in a cyber-attack on them on 12 June 2021. See this article from the UK Law Society Gazette.

It seems that these unknown hackers managed to hack into the computer system. It may be a case where data was stolen and the hackers are threatening to release the stolen data. Continue reading

Case Update: Company Cannot Suspend Its Directors

The High Court in Dato’ Shun Leong Kwong & Anor v Menang Corporation (M) Bhd & Ors [2021] MLJU 870 (grounds of judgment dated 21 May 2021) dealt with, among others, the issue of whether the company could suspend its directors.  The Court also addressed issues relating to Board meetings and the requisition of the members’ meeting.

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