Indonesia is a civil law country by tradition, with its legal system being based on Dutch colonial laws. Its corporate legal system as well as the respective registries are basic and do not recognise many modern corporate legal instruments. While these circumstances can make M&A deals challenging in Indonesia, its vast market and high growth rates make it one of the most attractive target markets. Prioritising and timing of the right aspects from the start is paramount.
Considerations for Distressed Transactions
Myanmar’s legal system is governed by both old and new laws and regulations, as well as internal policies and practices of the Myanmar authorities. Many laws dating back to the colonial period and post-independence period are, with certain changes, still in force. Since its political and economic opening in 2011, Myanmar has embarked on a comprehensive reform process and is currently overhauling its legal framework. Existing laws were revised or replaced, and new laws enacted.
Considerations for Distressed Transactions
The Singapore legal system is historically based on English law, with an ever increasing local jurisprudence. A strict application of the rule of law, up-to-date regulations and legal instruments and fast-reacting legal institutions make Singapore a popular legal hub for the region.
Considerations for Distressed Transactions
Clean Sales
If a company is already trading insolvent or is on the brink of insolvency, certain provisions may jeopardise a “clean sale”, such as:
Malaysia continues to go from strength to strength as an economic powerhouse in Southeast Asia. Ranked 12th in the World Bank’s Ease of Doing Business Ranking of 2020, offering political stability, competitive taxation, modern infrastructure and low labour costs, Malaysia has in recent times enjoyed an influx of investments from multinational corporations and overseas SMEs.
Considerations for Distressed Transactions
Clean Sales
The legal system of the Kingdom of Thailand is based on the civil law legal system. In addition, it is strongly influenced by common law principles. Primary sources of law include the Thai constitution, which is the supreme law, legislation such as codes and acts, decrees and customary principles. Under the current legal system, judicial decisions are not binding; in practice, however, decisions of the Supreme Court are persuasive, have some precedential value and are often used as a guideline for interpretation of the law.