Introduction
On 5 October 2022, the UK Supreme Court delivered its long-awaited judgment in BTI 2014 LLC v. Sequana SA and others [2022] UKSC 25 ("Sequana Case") which concerns the question of the trigger point when directors must have regard to the interests of creditors ("Creditor Duty"). This case raised questions of considerable importance for Malaysian company law.
Rabindra S Nathan, Shearn Delamore & Co
This is an extract from the 2023 edition of GRR's The Asia-Pacific Restructuring Review. The whole publication is available here.
In summary
Introduction
The High Court on 25 May 2022, allowed the judicial management order applications (“JM Applications”) filed by three wholly-owned subsidiaries of Jerasia Capital Berhad (“JCB”), namely Jerasia Apparel Sdn Bhd (“JASB”), Jerasia Fashion Sdn Bhd and Canteran Apparel Sdn Bhd (“CASB”) (collectively the “Applicants”).
Introduction
In this day and age where loans, mortgages, and other forms of financial assistance are frequently sought by persons who have been hard-hit by the Covid-19 pandemic, one may wonder as to what happens when one passes away and has yet to settle their liabilities. A more curious question which infrequently arises in the minds of most people is, what are the consequences if these liabilities exceed their assets when they pass away?
What's this Update about?
In the recent decision of the Malaysian High Court in Re Top Builders Capital Bhd & Ors [2022] MLJU 1 ("Top Builders"), Ong Chee Kwan JC reaffirmed certain principles for the sanction of a scheme of arrangement ("SOA") and also decided on some novel issues:-
- Introduction
We have seen many businesses strive to navigate through the financial constraint due to the COVID-19 pandemic. One of the factors that affects companies’ cashflow is the outstanding payment due from another party (debtor). Collecting receivables would be troublesome and parties would eventually resort to legal recourse. In this situation, it is important for debt collectors to understand how the legal debt recovery process works in Malaysia in order to enforce their rights.
The proper tax treatment of real property disposals is a common area of dispute between taxpayers and the Inland Revenue Board (Revenue). Taxpayers who have disposed of investment properties expect to be taxed under the Real Property Gains Tax Act 1976 (RPGTA). The Revenue, on its part, may disagree, taking the view that the taxpayer had been trading and ought to be taxed (at the higher rate) under the Income Tax Act 1967 (ITA).
The Shipping Law Updates is a publication by our Regional Shipping Group which marshals legal expertise, industry insight, and commercial acumen in the fields of maritime and trade from the diverse talent pool of specialist lawyers at the Rajah & Tann Asia offices. The publication provides a snapshot of the key legal, regulatory, case law and industry developments in the region that have an impact on the shipping industry and your operations.
ABOUT THE AUTHORS
Kumar Kanagasingam Senior Partner
Banking & Insolvency E: [email protected]
Sean Yeow Huang-Meng Partner
Banking & Insolvency E: [email protected]
Andrew Chiew Ean Vooi Partner
COVID-19 Crisis
COVID-19 continued to take its toll on the Malaysian economy in 2021.
On 12 November 2021, Bank Negara Malaysia (BNM) reported that Malaysia's economy contracted 4.5% year-on-year in the third quarter of 2021. This comes after a 5.6% contraction of Malaysia's GDP in 2020, which was the second worst contraction since the Asian financial crisis in 1998.