Beneath the glamorous and fast-paced veneer of the corporate world lies a creeping anxiety among directors: that a single lapse in judgment or a wrong commercial decision could lead to their professional crucifixion.   This alert seeks to quell such unease by unpacking a foundational doctrine in Malaysian corporate law, namely the business judgment rule and by setting out the confines within which directors may safely exercise their discretion without attracting liability.  

Fraudulent scams have become increasingly prevalent where victims voluntarily transfer funds to scammers whom they genuinely believe to be legitimate at the time of payment. This reality renders the recovery of funds from banks to be extremely challenging, if not impossible. Consequently, the primary recourse for victims often lies in pursuing recovery directly from the fraudsters themselves.   Fraudulent scams invariably involve elements of fraud and illegality. In such circ

This alert discusses the recent Court of Appeal ruling in Tay Keong Kok & Ors. v Eastmont Sdn. Bhd ., Civil Appeal No.: B-02(NCC)(W)-1705-09/2021, regarding a claim under Section 540 of the Companies Act 2016 (CA) against a number of individuals for the debts incurred by a company in respect of the fraudulent trading undertaken using the company’s name. Tay Keong Kok  also decided on a claim for tort of conspiracy to injure but this point is not discussed in this alert.   Bac

30 October 2023 KUALA LUMPUR: The High Court here has allowed Bersatu to challenge the Malaysian Anti-Corruption Commission’s (MACC) seizure of the party’s bank accounts. Justice Ahmad Kamal Md Shahid granted the party’s application for leave to commence judicial proceedings on grounds that the application is not frivolous. The court set case management for Nov 28. In April, MACC announced that it had seized two Bersatu accounts under Section 50 of the Anti-Money Laundering,

30 October 2023 PETALING JAYA: The Kuala Lumpur High Court has allowed Bersatu to challenge the Malaysian Anti-Corruption Commission’s (MACC) seizure of its accounts. IT was granted leave Monday (Oct 30) morning by the High Court (Appellate and Special Power division) for its judicial review application to challenge the seizure orders imposed by the MACC on its party accounts. Justice Datuk Ahmad Kamal Md Shahid made the decision during an online proceeding in which he ruled

10 May 2022 KUALA LUMPUR (May 10): Umno central in its defence against the RM16 million suit filed by SRC International Sdn Bhd and two others claimed that the suit is an abuse of the court process and should be time barred as it was filed more than six years after the Malay nationalist party received the funds. The political party further claimed that since SRC also filed a suit against its former directors and the directors of its subsidiary company Gandingan Mentari Sdn Bh

31 MARCH 2022 KUALA LUMPUR, March 31 — The High Court here today rejected a RM1.02 billion suit by Barakah Offshore Petroleum Bhd (Barakah) and its wholly owned subsidiary PBJV Group Sdn Bhd (PBJV) against Petroliam Nasional Berhad (Petronas) and Petronas Carigali Sdn Bhd (PCSB). Barakah had sued the two companies over the suspension of PBJV’s licence under the Petroleum Development Act 1974 (PDA). Judge Datuk Aliza Sulaiman ruled that Petronas does not owe a duty of care to

31 MARCH 2022 KUALA LUMPUR (March 31): The High Court has dismissed a stay application by UMNO and its president Datuk Seri Ahmad Zahid Hamidi to stop the hearing of a RM16 million lawsuit filed against Umno by 1MDB’s former subsidiary SRC International Sdn Bhd and its two units. High Court Judicial Commissioner Datuk Mohd Arief Emran Arifin ruled that there were no special circumstances to grant a stay of the hearing pending the disposal of UMNO's appeal at the Court of Appe

22 MARCH 2022 KUALA LUMPUR (March 22) : SRC International Sdn Bhd and its subsidiary, Gandingan Mentari Sdn Bhd, have applied for a Mareva injunction against former prime minister Datuk Seri Najib Razak to stop him from transferring or dissipating of his assets amounting to RM42 million. The application was filed on Feb 9, a day after SRC International's former parent company, 1Malaysia Development Bhd (1MDB), had obtained a worldwide Mareva injunction — after an ex-parte (si

KUALA LUMPUR, Feb 8 — 1MDB and four subsidiaries secured an ex parte Mareva injunction against ex-prime minister Datuk Seri Najib Razak over the US$681 million (RM2.85 billion) they were seeking to reclaim from him. According to The Edge Markets , the asset freezing also limited Najib to withdrawing no more than RM100,000 a month for his living costs and legal expenses. A Mareva injunction is a legal order to prevent a defendant or respondent from transferring disputed assets