Announcement, Legislation Updates, Legal News, Case Updates, Articles, Newsletter
Apr 22 2021 |articles
Ever wondered how business owners are able to pay off huge sums of their company’s debts? Well the simple answer is, they don’t. When a company is incorporated, it is deemed to be a separate legal entity that is distinct and separate from its members such that a ‘corporate veil’ is said to be drawn to separate between the company and its members or directors. In other words, the company’s rights and liabilities are their own and not that of the individual business owner’s. This principle has long been established in the English case of Salomon v Salomon & Co Ltd (‘Salomon’) and has been adopted within the Malaysian jurisdiction as well.
Mar 09 2021 |articles
In February 2020, the UK Court of Appeal in the case Allen v Dodd & Co Ltd  EWCA Civ 258 clarified what “knowledge” or information is necessary to fall under the tort of inducing a breach of contract, specifically in relation to a situation wherein an employer recruits an employee and receives legal advice regarding the enforceability of the employee’s post-employment restrictions.
Mar 09 2021 |articles
Very recently on 5.3.2021, the Federal Court in the case of Goh Teng Whoo and Tan Hwa Cheng v Ample Objectives Sdn Bhd decided that where the service of writ is effected by way of AR Registered Post, a judgment in default of appearance cannot be sealed by the Court if the Affidavit of Service does not exhibit the AR Registered card containing an endorsement as to the receipt by the defendant himself, or someone else authorised to accept the service on his behalf.
Feb 22 2021 |articles
In the case of Sulaiman bin Ahmad & Ors v Jemain bin Mohamed & Ors  11 MLJ 616, the High Court accepted a sijil faraid as sufficient evidence of the Plaintiffs as beneficiaries of an estate. As such the Plaintiffs had locus standi to commence an action in the civil courts against the Defendants in respect of a fraudulent transfer of land.
Feb 18 2021 |articles
The Court of Appeal in the case of Godell Parking Sdn Bhd v Majlis Bandaraya Petaling Jaya  6 MLJ 43 (the “Case”) decided on the applicability of what seems to be a mandatory dispute resolution for an amicable settlement clause in a Concession Agreement entered into between the parties.
Feb 05 2021 |articles
On 20 January 2021, the Court of Appeal made a landmark decision that a listed company must be de-listed once it has been served with a winding up order. This was ruled in the Court of Appeal’s unanimous decision to dismiss an appeal against the decision handed down by the High Court on 15 June 2020 in a suit brought by Bursa Malaysia Securities Berhad against Mohd Afrizan Bin Husain as liquidator for Wintoni Group Berhad.
Jan 29 2021 |articles
The High Court in Big Man Management Sdn Bhd v Tenaga Nasional Bhd  11 MLJ 472 engaged with the issue of inter alia whether Tenaga Nasional Berhad (TNB) as the licence holder for electricity supply in Malaysia can disconnect electricity supply from a premise upon allegations of meter tampering and upon the powers granted to it under section 38 of the Electricity Supply Act 1990 (ESA) once the tampering was no longer extant or has been halted or rectified.
Jan 25 2021 |articles
On 19.01.2021, the Federal Court of Malaya in PJD Regency Sdn Bhd and Tribunal Tuntutan Pembeli Rumah & Anor and other appeals (Case No. 01(f)-29-10/2019(W)) finally resolved with clarity the long pending confusion among the public and ruled in favour of house buyers concerning the calculation of liquidated damages (“LAD”) to be paid by housing developers in the late delivery of vacant possession.
Jan 18 2021 |articles
T. Kuhendran, Susan Tan Shu Shuen and Noor Sumaeya Sofea Shamsudin from our Construction Dispute Resolution practice group succeeded in resisting the Employer’s (“Defendant”) application to set aside and stay an adjudication decision granted in favour of the Main Contractor (“Plaintiff”) in the sum of MYR3,642,356.58, and obtained an order to enforce the same.
Nov 12 2020 |articles
Public Rulings are publications issued by the Inland Revenue Board of Malaysia (IRBM) which serves as a guidance to taxpayers on the interpretation of the Income Tax Act (ITA) 1967 and the IRBM’s treatment on various issues.
Nov 04 2020 |articles
In August 2020, T Kuhendran, Susan Tan Shu Shuen, and Noor Sumaeya Sofea Shamsudin from our Construction Dispute Resolution practice group have successfully obtained an order to enforce an adjudication decision granted in favour of the Main Contractor (“Plaintiff”) in the sum of MYR10,053,537.15 and resisted the Employer’s (“Defendant”) application to set aside the same.
Oct 26 2020 |articles
The Federal Court in Pancaran Prima Sdn Bhd v Iswarabena Sdn Bhd  MLJU 1273 engaged with the issue of inter alia whether the threshold under section 37 of the Arbitration Act 2005 is very low and whether the arbitrator who applies his own knowledge and expertise in the construction industry to a fact in issue can be in breach of the rules of natural justice.
Oct 23 2020 |articles
In August 2020, the Federal Court was presented with series of question of law regarding the principle of functus officio which is a well-recognized principle in our legal system and has illuminated and clarified the said doctrine, its scope, exceptions and applicability vis-à-vis judgments and/or orders in the case of Stone World Sdn Bhd v Engareh (M) Sdn Bhd  2 MLJ 208
Oct 22 2020 |articles
The Federal Court took the position that rather than adopting a rigid set of rules to demarcate the boundaries of appellate intervention insofar as findings of fact are concerned, the “plainly wrong” test as decided in previous Federal Court cases should be retained as a flexible guide for appellate courts. As such, there is no necessity to have a rigid guideline to be adopted by an appellate court in the application of the “plainly wrong test” in reversing finding of facts by a trial court.
Oct 22 2020 |articles
Deferred prosecution agreement (DPA) were introduced in the United Kingdom’s Crime and Courts Act 2013 and have been used in 8 enforcement actions ever since. DPAs have been regularly used by regulators in the US since 1992. Other countries where the DPA mechanism are available include France, Canada, Singapore and Australia. There are an increasing number of countries considering implementing a DPA regime. Given that global trend, it would be prudent for Malaysia to consider the same.
Oct 16 2020 |articles
In August 2020, the Federal Court of Malaysia had the opportunity of interpreting and determining the scope and legal effect of Section 37 of the Arbitration Act 2005 (“AA 2005”) in the case known as Master Mulia Sdn Bhd v Sigur Rus Sdn Bhd  1 9 CLJ 213 (“Master Mulia Case”).
Sep 15 2020 |articles
In a recent case handled by Ms. Idza Hajar Ahmad Idzam from Messrs Zul Rafique & Partners, several questions of law were posed and answered by Justice Ong Chee Kwan sitting in the High Court of Kuala Lumpur. The full grounds of decision may now be found at Rozilawati Binti Haji Basir v Nationwide Express Holdings Berhad v 4 Others  MLJU 1198. Ms. Idza was appearing for all the defendants in this case namely the public listed company i.e. Nationwide Express Holdings Berhad and the directors thereof at the material time to defend against the claim commenced by one Rozilawati Binti Haji Basir who was once a Managing Director and a director of the 1st Defendant.
Aug 14 2020 |articles
Life is uncertain. Planning for the inevitable by listing/recording your wishes will not only give you peace of mind as it ensures the ones you love are provided for upon your demise, it will also avoid the lengthy and often painful process that your loved ones will go through to have your assets administered if no will was prepared.
Jul 07 2020 |articles
In March 2020, the Federal Court in the case of Siemens Industry Software Gmbh & Co Kg (Germany) (formerly known as Innotec Gmbh) v Jacob and Toralf Consulting Sdn Bhd (formerly known as Innotec Asia Pacific Sdn Bhd) (Malaysia) & Ors  MLJU 363 (the ‘Case’) decided on whether, in an application for registration and enforcement of an arbitral award under section 38 of the Arbitration Act 2005 as a judgement of the High Court of Malaya only relates to the dispositive portions of the award and not the entire award.
Jul 01 2020 |articles
Businesses operating as groups may no longer rely on the principle of ‘separate legal entity” as the Industrial Courts may lift the corporate veil to decide who is the true ‘employer’ in a claim. In this article, we examine the facts, issues and ruling in the case of Ahmad Zahri bin Mirza Abdul Hamid v AIMS Cyberjaya Sdn Bhd  MLJU 595 which led to the Federal Court's judgement in lifting the corporate veil and determining the genuineness of a fixed-term contract.
Jun 15 2020 |articles
On 3rd April 2020, the Technology & Construction Court in the case of A Company v X, Y and Z  EWHC 809 (TCC) decided to continue an injunction to restrain the Defendant i.e. a global consultancy group, from acting as expert witnesses in arbitration proceedings against the Claimant. This article discusses the facts, issues and judgment of the case.
Jun 15 2020 |articles
Imagine waking up one day in receipt of a judgment in default while having an ongoing dispute concerning the performance of a contract. Imagine further that the contract contains a valid arbitration agreement which was never resorted to. Should the Judgment in Default be upheld as no appearance was ever entered? Should the Judgment in Default be set aside as it should have been referred to arbitration in accordance to the contract?
Apr 15 2020 |articles
Section 17A introduces a new statutory corporate liability offence of corruption by a commercial organisation under Malaysian law. The section deems any director, controller, officer, partner or who is concerned in the management of the affairs of a commercial organisation to be personally liable for the same offence if the commercial organisation is found liable.
Nov 21 2019 |articles
The Industrial Relations (Amendment) Bill (“the Bill”) was tabled in the Malaysian Parliament for first reading on 7 October 2019 and was passed by the Dewan Rakyat on 9 October 2019.
Oct 11 2019 |articles
On 4 April 2018, the Malaysian Parliament passed the Limitation (Amendment) Bill 2018, which was subsequently granted the Royal Assent by the Yang di-Pertuan Agong on 27 April 2018. On 4 May 2018, the Bill was then gazetted into law as the Limitation (Amendment) Act 2018, and came into force on 1 September 2019
Jul 08 2019 |articles
In a landmark decision with a historic nine-member panel of judges, the Federal Court in the case of JRI Resources Sdn Bhd v Kuwait Finance House (M) Bhd (President of Association of Islamic Banking Institutions Malaysia & Anor, interveners)5 held that any decision by the Central Bank of Malaysia’s (Bank Negara Malaysia) Shariah Advisory Council (SAC) on Islamic finance is constitutional and binding on civil courts. In this article, we examine the facts, issues and ruling of the case.
Jul 08 2019 |articles
In this article, we aim to narrate the essentials of the General Data Protection Regulation (GDPR) and Malaysia’s Personal Data Protection Act 2010 (PDPA) to give a better understanding of GDPR’s application in Malaysia and also an overview of what needs to be done for Malaysian businesses receiving personal data from individuals of European Union (EU) member states.
Jul 08 2019 |articles
The introduction of instant messaging, namely WhatsApp, has changed the mode of communication in a workplace. It is now recognised as being a platform for fast, direct and professional communication. It is commonplace for employers to create different WhatsApp groups for employees in order to cater to different needs. The golden question here is whether an employee, upon deciding to quit a work WhatsApp group, can be used as a ground for dismissal.
Dec 18 2018 |articles
The 2019 Budget was unveiled by the Finance Minister, Lim Guan Eng, on 2 November 2018 and was passed by the Dewan Rakyat on 6 December 2018. The theme of the Budget was “A Resurgent Malaysia, A Dynamic Economy, A Prosperous Society”. In this article, we brief our readers on the highlights of the Budget 2019.
Dec 18 2018 |articles
The internet has dominated people from all walks of life with the online culture taking the world by storm. There is indeed an undeniable shift of information into cyberspace with individuals, companies and organisations taking their businesses online in a race to be the most technologically advance. Alas, issues concerning breaches of data surfaced, with millions of users’ data exposed. Thus, in light of the major privacy breaches, the European Union (“EU”) has adopted the General Data Protection Regulation2 (“GDPR”) in order to regulate and strengthen data protection of individuals in the EU.
Dec 18 2018 |articles
The Industrial Court of Malaysia has ruled on the inclusion of service charge in calculating wages in meeting the minimum wage requirement. In this article, we examine the facts, issues and ruling of the case.
Jun 01 2018 |articles
Cryptocurrencies and Initial Coin Offerings (ICO) have hit both local and international news headlines since last year. The fluctuating graph of Bitcoin value, the banning of ICO by the world’s second largest economy – China, as well as the ban introduced by Facebook on the advertisements of cryptocurrencies and ICO really stirred investors up. In this article, we share with our readers on the legal position of cryptocurrencies and ICO in Malaysia.
Jun 01 2018 |articles
In a landmark decision, the Singapore Court of Appeal in the case of Hii Chii Kok v Ooi Peng Jin London Lucien and another has adopted a new legal test in determining whether a doctor has been negligent in dispensing medical advice. In this article, we examine the facts, issues, and rulings of the case.
Jun 01 2018 |articles
Job applicants are generally required to provide references from their former employers, which is then used by the prospective employers to assess the applicant’s character and abilities. No standard of care was previously set in preparing such references until the landmark case of Ramesh s/o Krishnan v AXA Life Insurance Singapore Pte Ltd . The Singapore Court of Appeal in that case had laid out the standard of care expected of an employer to their former employees. In this article, we examine the facts, issues and the standard of care set out in the case.
Sep 29 2017 |articles
Amendments have been made to three Acts, namely the National Land Code 1965 ("the NLC"), Strata Titles Act 1985 ("the STA"), and Land Acquisition Act 1960 ("the LAA"). The amendments to the NLC and STA came into force on 1 January 2017 while the enforcement date for the amendments to the LAA is yet to be announced.
Jul 06 2017 |articles
A new market, known as the Leading Entrepreneur Accelerator Platform (LEAP) Market, has been introduced in Malaysia. The LEAP Market is the third market in addition to the existing Main and ACE Markets. It offers lower entry requirements for the small and medium-sized enterprises (SMEs) in Malaysia.
May 17 2017 |articles
The former Bankruptcy Act 1967 ("the previous Act") has been renamed Insolvency Act 1967 ("the new Act") pursuant to the amendments made via the Bankruptcy (Amendment) Act 2017. Although the amendments have been gazetted, its enforcement date is yet to be appointed.
Nov 03 2016 |articles
The Malaysian Federal Court in the case of Mohd Ridzwan bin Abdul Razak v Asmah bt Hj Mohd Nor recently delivered a landmark judgment, ruling that victims of sexual harassment will now be able to seek civil remedies under the tort of sexual harassment. This is the first case involving a sexual harassment victim at a workplace who sought remedy from the civil court. There was previously no avenue for a civil action for sexual harassment under Malaysian law.
May 17 2016 |articles
In Malaysia,the National Minimum Wages initiative was first introduced and announced by the Malaysian Prime Minister, Dato' Seri Najib Tun Razak in his budget speech on 15 October 2010.
Apr 18 2016 |articles
The Trans-Pacific Partnership Agreement ("TPPA") is a multilateral free trade agreement which aims to further liberalise the economies of the Asia-Pacific region. Although the TPPA has been widely and extensively discussed over the past few years, many are still in the dark regarding what it actually entails. In this article, we examine the general features as well as some highlights of the TPPA.
Dec 22 2015 |articles
If one were to ask who owns the copyright in famous photographs such as the Afghan Girl, The Terror of War, and Migrant Mother, it is indisputably Steve McCurry, Nick Ut, and Dorothea Lange respectively.
Oct 23 2015 |articles
The Strata Management Act 2013 which came into force on 1 June 2015, seeks to provide for matters relating to the proper maintenance and management of buildings and common property. The Act is applicable in Peninsular Malaysia and the Federal Territories.
May 27 2015 |articles
The Court of Appeal, in the recent decision of Airasia Bhd v Rafizah Shima Mohamed Aris, ruled on the extent in which the Federal Constitution applies in an employment contract between private parties, and the applicability of the Convention on the Elimination of All Forms of Discrimination against Women ("CEDAW") in Malaysia.
Jan 25 2015 |articles
In October 2014, the Federal Court in Harianto Effendy Zakaria & Ors v Mahkamah Perusahaan Malaysia & Anor, upheld the dismissal of nine former bank employees by Bumiputera Commerce Bank Berhad (now known as CIMB Bank) ("the Bank") for unlawful picketing at the premises of the Bank.
Aug 28 2014 |articles
In June 2014, the Malaysian Industrial Court, in its landmark decision, ruled on the issue of a hotel employee’s salary structure. The judgment, fully supported by the Malaysian Trades Union Congress ("MTUC") is now a precedent which ought to be followed by those in the hospitality industry.
Jun 05 2014 |articles
Bank Negara Malaysia ("BNM") has always been a champion of Islamic finance in terms of regulatory mechanisms and its implementation.
Sep 05 2013 |articles
Section 233 of the Communications and Multimedia Act 1998 addresses improper use of network facilities and network service. It provides, amongst others, for the creation or transmission of obscene or offensive communication, which is intended to annoy, abuse or threaten another.
Jul 01 2013 |articles
Amendments to the Central Bank of Malaysia Act 2009 (‘the Act’) came into operation on 8 February 2013.
Dec 10 2012 |articles
The much anticipated Rules of Court 2012 (ROC) came into effect on 1 August 2012. The ROC, in combining the Subordinate Court Rules 1980 and the Rules of the High Court 1980, aims to streamline civil procedure in the Subordinate Courts and High Courts.
Jul 24 2012 |articles
Netizens in Malaysia, now share a common fear and feeling of uneasiness following the swift passing of the amendments to the Evidence Act 1950.
Nov 30 -0001 |articles
The Netting of Financial Agreements Act 2015 came into force on 30 March 2015. It seeks to provide a legal framework governing close-out netting for financial transactions in Malaysia.