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.
Example: A obtains judgment against B and C for RM500,000. Are B and C liable to equal proportions of the judgment sum, i.e., RM250,000 each, or are they each liable for RM500,000?
This distinction between "joint liability" and "joint and several liability" was recently clarified by the Federal Court.
Brief facts
Introduction
Commercial transactions and disputes are increasingly likely to contain a cross-border element. As such, the ability of Courts to cooperate on the management of proceedings that span their respective jurisdictions will facilitate the efficient resolution of cross-border issues. In this regard, the Singapore and Malaysia Courts have demonstrated a commitment to judicial cooperation between the two countries.
Rabindra S Nathan, Shearn Delamore & Co
This is an extract from the 2022 edition of GRR's the Asia-Pacific Restructuring Review. The whole publication is available here.
In summary
Introduction
Without a doubt, a scheme of arrangement is a preferred corporate rescue mechanism for a company in financial distress. It allows the management of a company to retain control while carrying out an approved debt restructuring compromise or arrangement with creditors of the company. The ultimate goal is to restructure the debts of the company in a manner acceptable to at least 75% of its creditors in value so that the company can continue as a going concern.
In a relationship between a creditor and debtor, the issue of liability is always a cause of concern. This is made even more apparent when there is more than one debtor involved as the terms of liability is not necessarily clear. Among the popular issues of contention is whether the debtors’ liability is joint or joint and several. In this commentary, we will explore this artificial distinction through the recent Federal Court case of Lembaga Kumpulan Wang Simpanan Pekerja v. Edwin Cassian Nagappan @ Marie [2021] 1 LNS 928.
Introduction
The ongoing COVID-19 pandemic has resulted in many companies in Malaysia to be severely affected financially. One of the major complications is having a set of problems with their creditors to the extent of being served with a winding up notice (Notice under section 466 of the Companies Act 2016, also known as the ‘Notice 466’) or worse, being slapped with a winding up petition.