Company Law Articles

When investors or business partners enter a company, they often look beyond day-to-day operations and consider what will happen when someone wishes to exit. In Malaysia, two important contractual mechanisms that address this issue are tag-along rights and drag-along rights....

In Malaysian company law, one of the most important safeguards for shareholders—particularly minority shareholders—is the concept of pre-emptive rights. These rights, recognised under the Companies Act 2016 and often reinforced by shareholders’ agreements, give existing shareholders the first opportunity to...

When shareholders in a company cannot agree on major decisions, the result is often a deadlock. In Malaysia, deadlock situations are particularly common in private companies where ownership is split evenly between two or more shareholders. While the Companies Act...

Directors are central to the management of a company in Malaysia, carrying both fiduciary and statutory duties under the Companies Act 2016. However, there are times when a director may no longer remain in office, whether by choice or by...

Not every company facing financial difficulties needs to be wound up. In Malaysia, the Corporate Voluntary Arrangement (CVA) provides an alternative mechanism for struggling businesses to restructure their debts while continuing operations. Introduced under the Companies Act 2016, the CVA...

When a company in Malaysia enters the process of winding up, the rights and interests of creditors become the main priority. The Companies Act 2016 and related insolvency laws recognise that once a company is unable to pay its debts,...

When a company faces financial distress, the role of its directors comes under intense scrutiny. While a company is a separate legal entity under the Companies Act 2016, directors cannot simply hide behind the corporate veil when the company becomes...

Closing down a company is never an easy decision, but in some cases it is the most practical option. In Malaysia, the process of shutting down a company is called winding up, which can be either compulsory (by a court...

Serving as a director of a company in Malaysia is both an honour and a responsibility. Under the Companies Act 2016, directors are entrusted with the duty to act in good faith, in the best interest of the company, and...

Running a company in Malaysia involves more than just day-to-day operations. Every company, whether large or small, must comply with the statutory requirements set out under the Companies Act 2016. Among the most important obligations are the filing of annual...

In many Malaysian companies, especially family businesses and start-ups, not all shareholders enjoy equal power. Majority shareholders often control key decisions, while minority shareholders may feel sidelined. To address this imbalance, the Companies Act 2016 and established principles of company...

The role of a director in a Malaysian company carries significant responsibilities. Under the Companies Act 2016, directors are entrusted with fiduciary and statutory duties that ensure the company is managed in a proper, accountable, and lawful manner. Many business...

When entrepreneurs come together to start a company in Malaysia, the focus is often on the excitement of new opportunities, products, and markets. However, one of the most overlooked yet critical documents at the early stage of a business is...

In Malaysia, the most common and practical business structure is the Private Limited Company (Sdn Bhd), which is regulated by the Companies Act 2016. Many entrepreneurs prefer this model because it offers limited liability protection, a separate legal identity, perpetual...

The Federal Court has recently delivered a landmark decision in WTK Realty Sdn Bhd & Ors v Kathryn Ma Wai Fong & Ors, shedding new light on share allotments within family-owned companies. At the heart of the case was whether...

In Malaysia, corporate rescue mechanisms are legal processes introduced under the Companies Act 2016 (CA 2016) to help financially distressed companies avoid winding up or liquidation. These business recovery options provide companies in financial trouble with temporary relief and a...