Case Update: Court of Appeal Confirms Liquidator Cannot Grant Sanction for Legal Proceedings

On 16 November 2023, the Court of Appeal in Oren Venture Sdn Bhd v Small Medium Enterprise Development Bank Malaysia Berhad (Court of Appeal Civil Appeal No. W-02(IM)(MUA)-587-04/2022) upheld the High Court decision (reported at [2022] 12 MLJ 247 and where I had written about it here).

Set out below is the extract from the Court of Appeal cause list website and with the Court setting out the brief grounds of decision (in the Malay language only). The full written grounds of decision do not appear available yet. I may write a fuller update once I have read the written grounds.

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Case Update: Liquidator Cannot Grant Sanction for Continuation of Litigation

The High Court in Small Medium Enterprise Development Bank Malaysia Berhad v Oren Venture Sdn Bhd and 3 others (grounds of judgment dated 4 March 2022) decided on the liquidator granting sanction for legal proceedings.

The crucial issue before the Court was whether a liquidator of a wound-up company can issue a sanction, or delegate to another person, the liquidator’s power to bring or defend any action or other legal proceedings in the name and on behalf of the company.

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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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