By the gazetting of the notice P.U. (B) 106/2018 dated 27 February 2018, the corporate rescue mechanism under Division 8 Part III of the Companies Act 2016 has come into force on 1 March 2018. The corporate rescue mechanism allows for financially distressed companies to consider two options: (1) corporate voluntary arrangement and (2) judicial management.
I set out only some brief key features of these two mechanisms. Along with the coming into force of the corporate rescue mechanism provisions, the new Companies (Corporate Rescue Mechanism) Rules 2018 have also come into force on 1 March 2018. Continue reading
The Companies Act 1965 (CA 1965) contained section 351 which allowed for an application for security for costs. The rationale for that section 351 was as follows.
When a company litigates against a party, and if that action were to fail, the defending party could find itself prejudiced if the company did not have enough money to pay the legal costs to that party. Hence, section 351 of the CA 1965 stated that if it appears by credible testimony that there is reason to believe that the company cannot pay the costs of the defendant, then the court can order that the company pay security for those costs.
Unfortunately, section 351 of the CA 1965 was not carried forward under the Companies Act 2016 (CA 2016). It was a useful provision to safeguard the interests of the defendant. Nonetheless, there are still other possible reliefs that a defendant can take to possibly apply for security for costs against a company. Continue reading
On Saturday 27 January, Cheng Leong and I are giving a talk on Business Development for Lawyers. We focus on building your career beyond legal skills. The talk is from 10am to 1pm and with a registration fee of RM25.
You can sign up on the KL Bar website here.
The Federal Court issued its grounds of judgment in the Tengku Dato’ Ibrahim Petra bin Tengku Indra Petra v Petra Perdana Berhad case. This is a significant decision explaining the scope of directors’ duties. It gives guidance on when a director acts in the best interest of the company and the discretion afforded to a director when the director makes a business judgment.
This case update will set out the brief background facts of the case and the legal principles that were decided by the Federal Court. I also set out the key takeaways and points that directors should take note of. Continue reading
This post is taken from and expanded from a note I circulated to my team. This is a 12-step checklist I impose on my lawyers whenever they draft their court papers.
#1. Sample Precedent from the Firm / Colleagues
As a starting point, we may ask for a sample precedent from colleagues. That’s fine as an initial step but we must adopt all the other following steps.
#2. Read Atkin’s Forms and Bullen & Leake
Compare with the English Atkin’s Forms. The English civil procedure rules changed significantly post 1999 so if the application is based on civil procedure rules rather than a specific area of the law, go and look back at the older version of Atkin’s. Also read the English Bullen & Leake & Jacob’s Precedent of Pleadings. Both Atkin’s and Bullen will have useful comments and notes, and references to cases.
#3. Read Malaysia Atkin’s Forms and Bullen & Leake Malaysia
Then read the Atkin’s Court Forms Malaysia and Bullen & Leake & Jacob’s Malaysian Precedents of Pleadings. Continue reading