The Federal Court today delivered a unanimous decision in respect of issues on liquidated ascertained damages (LAD) claims post the Ang Ming Lee case . The unanimous decision in the case of Obata and Vignesh was made by a five-member bench led by the President of the Court of Appeal, YAA Tan Sri Abang Iskandar Abang Hashim and Federal Court Judges comprising YA Zabariah Mohd. Yusof, YA Dato’ Sri Hasnah Mohammed Hashim, YA Datuk Harmindar Singh Dhaliwal and YA Datuk Abdul Kari

The digital revolution has fundamentally transformed intellectual property (IP) law in recent years, especially with the significant growth and development of Artificial intelligence (AI). Generative AI, which uses machine learning to produce content based on user prompts, exemplifies this change. For instance, ChatGPT, a notable language model, showcases how AI can impact IP through the creation, distribution, and consumption of creative works.    While AI pushes creative bo

Commercial transactions involving various companies often involve complex business arrangements in order to facilitate the objectives of...

Under the Strata Management Act 2013, the amount of maintenance charges and sinking fund to be paid is determined “in proportion to the allocated share units of each parcel”.   However, what happens if there are different types of parcels in a development, for example, a development consisting of residential units, retail units and a car park? Could a car park operator, who has no need to use the common facilities such as the swimming pool and gym, regularly used by residenti

Recently, the Court of Appeal in Keysight Technologies Malaysia Sdn Bhd v Ketua Pengarah Hasil Dalam Negeri [2024] MLJU 1271 ruled that the gains from the disposal of marketing and manufacturing intellectual property rights were of a capital nature and thus, were not subject to income tax. This alert summarises the Court of Appeal’s decision in this case.   Background The taxpayer, Keysight Technologies Malaysia Sdn Bhd, enjoyed pioneer incentive since 2000, where it enjoyed

A fortuna injunction is an injunction to restrain the filing of a winding-up petition. It bears its name from the case of Fortuna Holdings Pty Ltd v The Deputy Commissioner  of Taxation of the Commonwealth of Australia [1978] VR 83. There are two principles governing the grant of a fortuna injunction:   (i) Where the presentation of a winding-up petition has no chance of success in law or in fact; or   (ii) Where the petitioner of the winding-up asserts a disputed claim.   In

As businesses may also be misused to finance serious offences such as money laundering, terrorism, proliferation financing, and other illegal activities, the Companies Act 2016 implemented a beneficial ownership (BO) reporting system to reduce the prevalence of such unlawful activities.   The Companies (Amendment) Act 2024 (Amendment Act) came into operation on 1 April 2024. This alert discusses the key amendments, specifically the beneficial ownership reporting requirements.

Defamation is a legal concept recognised under the Defamation Act 1957 which aims to protect an individual’s reputation. This right is balanced against freedom of speech, allowing individuals to seek legal redress when defamatory content is published. It is trite that a statement can be considered defamatory if it has a tendency to lower, or adversely affect, a person's reputation; exposes a person to hatred, contempt or ridicule; causes him to be shunned or avoided or injure

It is commonplace that contracting parties will document their meeting of minds into a written agreement for formality and ease of enforceability. The question is whether contracting parties can subsequently come to a mutual agreement to vary the terms of the initial agreement including the agreement in relation to consideration i.e. price. Although a contract is essentially founded on the consent of both the promisor and promisee, this does not mean contracting parties can v

Recently, the High Court ruled in favour of the taxpayer in dismissing the tax authority’s application for a summary judgment under Order...

ESG encapsulates a powerful trinity of principles that have evolved from being a mere corporate buzzword into a business framework which is implemented by various businesses all over the world.   “E” for Environmental   The “E” in ESG champions for environmental protection. From combatting climate change to the reduction of pollution, greenhouse emissions, wastes and carbon footprint – the environmental pillar of ESG encapsulates a spectrum of environmental factors. Reference

Recently, the Court of Appeal in Ketua Pengarah Hasil Dalam Negeri Malaysia v Ehsan Armada Sdn Bhd [2024] 2 MLJ 494 disallowed the...

Following the implementation of the capital gains tax with effect from 1 March 2024, the Income Tax (Amendment) Act 2024 (the Amendment...

Derivative action is an action commenced on behalf of a company, especially in cases of “fraud on the minority” and “wrongdoers in control”. The commencement of derivative action is now a statutory regime under the Companies Act 2016 (CA). A complainant may, with the leave of court initiate, intervene in or defend a proceeding on behalf of a company. This is not confined to the members of the company alone as  it also extends to persons who are not members but entitled to be

Recently, the High Court ruled in favour of the taxpayer in Konsortium CMC Engineering Sdn Bhd – Colas Rail SA – Uni-way Sdn Bhd v Ketua...

In the complex world of legal disputes, where truth is often obscured by the fog of conflicting narratives, one might overlook the humble yet formidable power of a document. In the recent High Court case of Goh Choo Hock v Goh Swee Meng  [2024] AMEJ 0936, contemporaneous documents played a crucial role in determining the outcome of a land ownership dispute between 2 brothers.   Background   This case revolved around a dispute between two brothers, Goh Choo Hock (CH) and Goh S

Companies often embark on a spectrum of corporate exercises designed to bolster their market standing, drive shareholder value and adapt to the ever-evolving business dynamics.   This alert examines the various common corporate exercises that are undertaken by listed companies, ranging from rights issues to raise additional capital to bonus issues that reward shareholders. Each initiative represents a deliberate step towards sustainable growth of these listed companies.   Rig

On 29 March 2024, the Securities Commission Malaysia (SC) issued the revised Guidelines on Conduct for Capital Market Intermediaries (Guidelines) with the target of increasing the standards of professionalism and integrity of capital market intermediaries (CMIs) in the industry. CMIs are defined under the revised Guidelines to mean:   (a) a holder of a Capital Markets Services License granted by the SC pursuant to Section 61 of the Capital Markets and Services Act (CMSA);   (

Reinsurance is essentially insurance that a reinsurance company (reinsurer) undertakes to assume the risks of another insurance company (reinsured/primary insurer) for insurance policies they undertook with their customers (principal insured). Reinsurance facilitates the spreading of risk or financial exposure from the principal insurer to other reinsurers to enable them the possibility of underwriting larger risks. In the recent decision of Chubb Insurance Malaysia Bhd (dahu

Once a valid and enforceable judgment has been obtained by one party against another, a winding-up court will not revisit the judgment to determine whether the sum can be considered disputed, with the intent to defeat a winding-up petition against a company.   The recent Court of Appeal in Bludream City Development Sdn Bhd v Pembinaan Bina Bumi Sdn Bhd [2024] CLJU 545   discusses whether a company can be wound-up pursuant to an adjudication decision made under the Constructio