Corporate Fraud Lawyer Malaysia | Misrepresentation Claim

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Corporate Fraud & Misrepresentation Lawyers in Malaysia

Corporate fraud in Malaysia takes many forms — a director secretly siphoning company funds, a seller misrepresenting the financial position of a business to induce a buyer, a business partner orchestrating a scheme to deprive you of your investment. Whatever the form, the response must be fast, forensically precise, and legally comprehensive.

NZSK’s corporate litigation team in Kuala Lumpur and Selangor advises and represents clients in fraud and misrepresentation claims before the Malaysian courts. We understand that fraud cases carry a different urgency from ordinary commercial disputes: assets disappear, evidence is destroyed, and the window for effective intervention narrows by the day. We act fast and we act decisively.

We also act for defendants. A fraud allegation is a serious matter — if you are facing a claim that you or your company has acted fraudulently or made false representations, we provide robust defence advice from the outset.

Why Choose Us?

Fraud & Misrepresentation Claims We Handle

Fraudulent misrepresentation — where a party made a false statement of existing fact — knowingly or without belief in its truth, or recklessly as to its truth — to induce you into a contract, giving rise to claims for rescission and/or damages in the tort of deceit
Negligent misrepresentation — where a false statement was made carelessly, without the reasonable grounds that the maker should have had for believing it true
Innocent misrepresentation — entitling the affected party to rescission of the contract under the Contracts Act 1950
Misappropriation of company funds — by directors, officers, employees, or agents — including fraudulent payments, fictitious transactions, and the diversion of company monies to personal accounts
Fraud in share or business sale transactions — including false representations about the financial condition, liabilities, contracts, or regulatory status of the target
Civil conspiracy to defraud — claims against multiple parties who acted in concert — through unlawful means or otherwise — to cause loss to the company or its shareholders
Corporate identity fraud — including the wrongful use of company names, official seals, forged corporate documents, or falsified SSM filings

Why Fraud Cases Are Different — and Why Speed Matters

Fraud claims are legally distinct from ordinary breach of contract claims — and the distinction matters. In a fraud case, the court has power to disregard contractual limitation of liability clauses that would otherwise cap or bar your recovery. The limitation period runs differently. And crucially, the availability of emergency court orders — Mareva injunctions to freeze assets, Anton Piller orders to secure evidence — gives you tools that are simply not available in ordinary commercial litigation.

In the earliest stages of a fraud case, the single most important step is often an urgent application for a Mareva injunction to freeze the defendant’s assets before they are transferred, hidden, or taken out of Malaysia. We have experience in obtaining these orders on short notice — and in the affidavit evidence and legal argument required to sustain them at the inter partes hearing.

Working with Forensic Specialists

In complex fraud cases — particularly those involving misappropriation of company funds, manipulation of financial records, or multi-party schemes — we work alongside forensic accountants and digital forensic specialists to trace assets, reconstruct transactions, and build an evidential foundation that can withstand cross-examination at trial. We manage these multi-disciplinary teams and ensure the legal strategy drives the forensic work, not the other way around.

Frequently Asked Questions

What is the legal difference between fraudulent misrepresentation and ordinary breach of contract in Malaysia?

A breach of contract claim arises where a party fails to perform a contractual obligation. Fraudulent misrepresentation is a tort — it requires proof that a false statement of existing fact was made knowingly or recklessly to induce you into the contract. The legal consequences are different: in fraud, you can recover all losses flowing directly from the transaction regardless of foreseeability, and contractual limitation clauses may not protect the wrongdoer. The limitation period also runs differently.

Can I rescind a contract if I was misled into entering it?

In many cases, yes — subject to the right to rescind not having been lost through affirmation, lapse of time, or the intervention of third party rights. Rescission restores both parties to their pre-contractual position. We advise on whether rescission is available in your specific situation and whether to pursue it alongside or instead of a damages claim.

What is a Mareva injunction and can I get one in Malaysia?

A Mareva injunction is a court order freezing a defendant's assets — typically bank accounts and real property — to prevent them from being dissipated before a judgment can be obtained and enforced. Malaysian courts have jurisdiction to grant Mareva injunctions both domestically and, in appropriate cases, over assets held abroad. We act urgently in Mareva applications — see our Injunctions & Urgent Relief page for more detail.

A director has been taking money from my company. What should I do right now?

Stop the loss first: consider what immediate steps can be taken to restrict the director's access to company accounts and authorisations — with legal advice on how to do this without yourself creating liability. Preserve all evidence you can access — bank statements, payment records, authorisation trails. Then contact us immediately. We advise on the full range of remedies including civil fraud claims, a derivative action under section 347, and urgent injunctive relief.

Speak to a Corporate Lawyer Now!

Whether you need advice on suspected corporate fraud, assistance with internal investigations, or representation in pursuing or defending fraud claims, contact NZSK for practical and commercially focused trade mark legal advice. Contact us to arrange a consultation.