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As part of its on-going efforts to promote informed investment decisions, the Securities Commission Malaysia ("SC") has amended the Prospectus Guidelines. The changes were made following extensive consultations with key stakeholders including principal advisers, legal advisers, reporting accountants, research analysts and investors.
The key amendments include introducing a structured and concise prospectus summary not longer than 10 pages. The prospectus summary would no longer include information that is already publicly available to investors. They also set out SC's expectations in complying with the disclosure requirements.
The revised Prospectus Guidelines will come into effect on 1 March 2018.
Bank Negara Malaysia ("BNM") Governor, Tan Sri Muhammad Ibrahim, has announced that BNM will enforce the country's crypto-currency regulation next year. Governonr Tan Sri Muhammad Ibrahim said that this move is aimed at preventing the abuse of the system for unlawful activities, and ensuring the integrity and stability of the financial system. Beginning 2018, BNM will designate persons converting crypto-currencies into fiat money as reporting institutions under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001.
Click here for the related feature on BNM's issuance of cryptocurrency guidelines in the July-September 2017 issue of our Regional Round-Up.
The Bankruptcy (Amendment) Act 2017, which came into force on 6 October 2017, brought significant amendments to the bankruptcy regime in Malaysia including imposing stricter requirements on the commencement of bankruptcy proceedings against individuals. The threshold for the commencement of bankruptcy proceedings has increased from RM30,000 to RM50,000. A creditor is also prohibited from commencing bankruptcy proceedings against social guarantors. More protection is given for guarantors who are not social guarantors, effectively that bankruptcy proceedings shall not be commenced without leave of the Court. To obtain leave, the creditor must satisfy the Court that he has exhausted all modes of execution and enforcement to recover the debt owed to him by the borrower. Further, there are more stringent requirements for the service of Bankruptcy Notices and the Creditors Petitions on the debtor.
The amendments also:
- introduce a voluntary arrangement scheme which gives an opportunity to a debtor to propose a voluntary arrangement with his creditors at any time before he is adjudged bankrupt;
- introduce the automatic discharge of the bankruptcy upon expiration of three years from the date of the submission of the statement of affairs provided the bankrupt achieves the target contribution of his provable debt and complies with the requirement to render an account of moneys and property to the Director General of Insolvency;
- prevent a creditor from objecting to the discharge of certain bankrupts such as a social guarantor, a bankrupt who is registered as a person with disability under the Persons with Disabilities Act 2008, a bankrupt suffering from a serious illness as certified by a Government Medical Officer and a deceased bankrupt.
This judgment of the Malaysian apex court in Far East Holdings Bhd & Anor v Majlis Ugama Islam dan Adat Resam Melayu Pahang and other appeals [2017] MLJU 1726 - 15 November 2017 is an important one in the field of Malaysian arbitration law.
This is for two reasons:
- Firstly, it explains the grounds available to a Malaysian court to set aside arbitral awards. This is the first such explanation by the apex court; and,
- Secondly it explains the law governing references of questions of law arising out of arbitral awards. This is the first such explanation by any Malaysian court.
The judgment draws lessons from jurisprudence in various similar jurisdictions – the United Kingdom, Singapore, New Zealand and Canada. More importantly, it reinforces Malaysia's long-standing position of minimal intervention in arbitral awards. The general thrust of the judgment is indeed a welcome development in Malaysian law.
The Federal Court in its latest decision related to adjudication (View Esteem Sdn. Bhd. v. Bina Puri Holdings Bhd. (Civil Appeal No.: 02(f) – 11 – 02/2017(W)) [2017] 1 LNS 1378) found that an adjudicator cannot decline to consider defences raised in the Adjudication Response even though these defences were not raised in the Payment Response. The Federal Court further held that a failure to consider defences raised at the Adjudication Response is in breach of natural justice. The effect of this decision is that the adjudicator's jurisdiction is no longer limited to the ambit of the Payment Claim and Payment Response. This decision overturned the decision of the Court of Appeal which upheld the High Court's decision.
Please note that whilst the information in this Update is correct to the best of our knowledge and belief at the time of writing, it is only
intended to provide a general guide to the subject matter and should not be treated as a substitute for specific professional advice.
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Christopher & Lee Ong
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Contacts: Lee Hock ChyeManaging PartnerD +603 2273 1919F +603 2273 8310hock.chye.lee@christopherleeong.comYon See TingPartnerD +603 2278 8311F +603 2278 8322see.ting.yon@christopherleeong.comFiona SequerahPartnerD +603 7958 8310F +603 7958 8311fiona.sequerah@christopherleeong.comLim Wee HannPartnerD +65 62320606wee.hann.lim@rajahtann.comYau Yee MingPartnerD +603 2278 8311F +603 2273 8322yee.ming.yau@christopherleeong.comKuok Yew ChenPartnerD +603 7958 8310F +603 7958 8311yew.chen.kuok@christopherleeong.com| Rajah & Tann Asia is a network of legal practices based in Asia. |
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