[BANKING & INSOLVENCY] Raintree F&B Sdn Bhd v Red Sena Berhad (In Liquidation)
Distribution of the surplus assets of a Special Purpose Acquisition Company
In a recent decision in Raintree F&B Sdn Bhd v Red Sena Berhad (In Liquidation), the Court of Appeal considered, for the first time, the issue of distribution of surplus assets in a Special Purpose Acquisition Company (SPAC), following its failure to complete a Qualifying Acquisition within the permitted timeframe. Red Sena Berhad, the SPAC in question, had raised funds through an IPO, but failed to complete the Qualifying Acquisition within the permitted timeframe. The court ruled that the Remaining IPO Proceeds, which formed part of the funds invested by the public, should revert to the public investors upon the liquidation of Red Sena Berhad. Accordingly, Raintree F&B Sdn Bhd and the Management Team, who were the promoters of Red Sena Berhad, were not entitled to participate in the distribution of the Remaining IPO Proceeds. This decision upholds the policy intent of the SC Equity Guidelines – which is to ensure the IPO Investors are not put at risk and will be able to recoup their invested funds, if the SPAC fails to complete the Qualifying Acquisition within the Permitted Timeframe.
If you have any queries, please contact the authors, Lambert Rasa-Ratnam (lr@lh-ag.com), Chia Oh Sheng (cos@lh-ag.com), or Lim Jun Xian (ljx@lh-ag.com) counsel for the Securities Commission Malaysia, who appeared as amicus curiae.
[ENERGY, PROJECTS & INFRASTRUCTURE] National Energy Transition Roadmap (NETR) Phase 2
The anticipated Phase 2 of the National Energy Transition Roadmap (NETR) has been unveiled, building upon the foundation laid in Phase 1. The roadmap now introduces six levers and five cross-cutting enablers for the energy transition.
If you have any queries, please contact Senior Associate, Joyce Ong (oky@lh-ag.com) or her team Partner, Steven Tee (syt@lh-ag.com).
[EMPLOYMENT] Reiterating The High Standards In The Banking Industry: Dismissal Of Senior Management Upheld For Breach Of Financing Policy
The Bank was represented by senior associate Nurul Aisyah Hassan of Lee Hishammuddin Allen & Gledhill. The Industrial Court award can be accessed here.
If you have any queries, please contact Senior Associate, Nurul Aisyah Hassan (nah@lh-ag.com), or her team Partner, Sharifullah Majeed
(sha@lh-ag.com).
[EMPLOYMENT] Special Alert: Enhanced Protection for Employees Under The SOCSO Act When They ‘Balik dari Kampung’
The Court of Appeal recently addressed the scope of protection granted to employees for injuries sustained due to commuting accidents.
In this Alert, we summarised key takeaways from this Court of Appeal decision, and the factors taken into account when deciding whether an injury was sustained while traveling for work-related purposes.
If you have any queries, please contact Associate, Ashreyna Kaur Bhatia (akb@lh-ag.com) or her team Partner, Amardeep Singh Toor (ast@lh-ag.com).
[TAX] Special Alert: Anti-Dumping Investigation On Exports Of Polypropylene Copolymer (“PPC”) From Malaysia To Indonesia
On 14.8.2023, the Indonesian Anti-Dumping Committee (“KADI”) initiated an Anti-Dumping investigation on the exports of Polypropylene Copolymer (“PPC”) to Indonesia. The investigation was initiated after PT Chandra Asri Petrochemical Tbk (“CAP”), a producer in Indonesia, alleging that there was a surge in imports of PPC in Indonesia. This is especially important to the local plastic industry and manufacturers as PPC is one of the main export in this industry.
This alert summarises the investigation and immediate actions that must be taken by the Malaysian plastic industry and manufacturers.
If you have any queries, please contact partner Jason Tan Jia Xin (tjx@lh-ag.com) or Ng Jack Ming (njm@lh-ag.com)
[ENERGY, PROJECTS & INFRASTRUCTURE] National Energy Transition Roadmap (NETR) Phase 1
To accelerate Malaysia’s energy transition, the Ministry of Economy has launched the National Energy Transition Roadmap (NETR) Phase 1 which provides a framework for the nation’s move to a green economy. This Insight underlines the policies and flagship projects highlighted under Phase 1.
If you have any queries, please contact Senior Associate, Joyce Ong (oky@lh-ag.com) or her team Partner, Steven Tee (syt@lh-ag.com).
[TMT] Understanding The First-Ever AI Act
Industries worldwide have been captivated by the evolution of artificial intelligence (AI), bringing transformative progress in automation and data-driven insights. In response to AI’s rapid growth, the EU AI Act has emerged as a pioneering regulatory framework aimed at addressing the challenges and opportunities in this evolving landscape.
In this alert, we explore the recently passed EU AI Act, i.e., the world’s first comprehensive AI law, and its key takeaways to the stakeholders under the purview of the Act.
If you have any queries, please contact associate, Wee Yun Zhen (wyz@lh-ag.com) or her team Partner, G. Vijay Kumar (vkg@lh-ag.com).
[IP] Trademark Mischief-Makers
There is an increasing trend of parties registering trademarks which they do not own, disregarding the rights of the true owners who fail to protect their trademarks. In this alert, we explore the legal avenues available for aggrieved trademark owners to safeguard their legal rights.
If you have any queries, please contact associate, Chan Wei Li (wli@lh-ag.com) or her team Partner, Chng Keng Lung (ckl@lh-ag.com).
[TAX] Special Alert: Safeguard Investigation On Imports Of Slag Wool, Rock Wool And Similar Mineral Wools Into Indonesia
On 25.7.2023, the Indonesian Trade Safeguard Committee initiated a safeguard investigation on the imports of Slag Wool, Rock Wool, and similar Mineral Wool (including Mixtures thereof), in the Bulk Form, Sheets or Roll into Indonesia. The investigation was initiated after PT Nichias Rockwool Indonesia, a producer in Indonesia, alleged that there was a surge in imports. This is especially important to the Malaysian slag wool & rock wool industry and manufacturers as data suggests that Malaysia takes up more than half of the total imports market share into Indonesia.
This alert summarises the investigation and immediate actions that must be taken by the Malaysian slag wool & rock wool industry and manufacturers.
If you have any queries, please contact Associate, Chua Chun Yang (cyc@lh-ag.com) or his team Partner, Jason Tan Jia Xin (tjx@lh-ag.com).
[TAX] Special Alert: Anti-Dumping Investigation On Exports OF Gloves For Non-Surgical Products From Malaysia To Brazil
On 31.7.2023, the Brazilian Ministry of Development, Industry, Trade and Services initiated an investigation against the exports of gloves for non-surgical procedures for health care from Malaysia, Thailand and China to Brazil. The investigation was requested by the only domestic producer in Brazil. The Brazilian authority will determine among others, whether 80.8% of anti-dumping duties, as alleged by the petitioner, ought to be imposed on the exports from Malaysia to Brazil.
This alert summarises the key allegations and immediate actions that must be taken by domestic glove manufacturers in Malaysia.
If you have any queries, please contact Associate, Chua Chun Yang (cyc@lh-ag.com) or his team Partner, Jason Tan Jia Xin (tjx@lh-ag.com).