Company Law

Corporate Rescue in Malaysia: CVA, Judicial Management & Schemes 6

Corporate Rescue in Malaysia: CVA, Judicial Management & Schemes

Corporate Rescue in Malaysia: Corporate Voluntary Arrangement, Judicial Management and Scheme of Arrangement Compared A company that cannot pay its debts is not necessarily a company that should be wound up. Many businesses in financial distress are viable if the debt can be restructured, the creditors held off and the management given time. The Companies

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Minority Shareholder Oppression in Malaysia: Your Rights and Remedies Under Section 346 7

Minority Shareholder Oppression in Malaysia: Your Rights and Remedies Under Section 346

A minority shareholder in a Malaysian private company can be in a difficult position. The majority controls the board, decides whether dividends are paid, sets the directors’ salaries and approves the contracts. There is no market for the minority’s shares. If the majority chooses to run the company for its own benefit, the minority can

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Loans to Directors & Related Party Transactions in Malaysia 8

Loans to Directors & Related Party Transactions in Malaysia

Loans to Directors and Related Party Transactions in Malaysia: What Sections 224, 225 and 228 Prohibit In many Malaysian companies, especially family-owned ones, money moves freely between the company and its directors. A director borrows from the company to buy a car. The company buys land from the director’s brother. The director’s wife’s company supplies

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Director Disqualification in Malaysia: Who Cannot Sit on a Board and What Happens If They Do 9

Director Disqualification in Malaysia: Who Cannot Sit on a Board and What Happens If They Do

Not everyone is permitted to be a company director in Malaysia. The Companies Act 2016 disqualifies certain people automatically and gives the court power to disqualify others. A disqualified person who continues to act as a director commits a criminal offence, and the company that allows it exposes itself to invalid decisions and regulatory sanction.

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How to Remove a Director in Malaysia: Section 206 of the Companies Act 2016 Explained 10

How to Remove a Director in Malaysia: Section 206 of the Companies Act 2016 Explained

Removing a director is one of the most contentious steps a company can take. Done correctly, it is a shareholders’ decision that the Companies Act 2016 fully supports. Done incorrectly, it produces an invalid resolution, a director who is still lawfully in office, and in many cases an oppression petition under section 346. This guide

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