[INTERNATIONAL ARBITRATION] Special Alert: Shifting Tides: The Fate of Arbitration Clauses in Liquidation Proceedings
In liquidation or winding-up proceedings, what happens if the disputed debts in question are subject to an arbitration agreement? Are the courts entitled to scrutinise the genuineness of disputed debts before deciding whether to stay the winding-up proceedings and refer parties to arbitration? These issues were recently considered by the Court of Appeal of Malaysia and the Privy Council.
In this alert, we will first discuss the decisions in Swissray Asia Healthcare Co. Ltd v V Medical Services M Sdn Bhd (Civil Appeal No. W-02(NCC)(A)-1479-08/2022) and Sian Participation v Halimeda International Ltd [2024] UKPC 16, before turning to analyse the practical implications of these decisions on creditors and debtors in winding-up proceedings.
If you have any queries, please contact the authors, Crystal Wong Wai Chin (wwc@lh-ag.com), Soh Zhen Ning (szn@lh-ag.com), and Ruth Lim Jia Yun (jylim@lh-ag.com).
[TMT] Special Alert: Safeguarding IT Service Providers: Addressing Breach of Payment Terms in IT Contracts
Breach of payment terms is a common issue in IT contracts, often leading to disputes and cash flow problems for IT service providers.
This alert examines various contractual mechanisms that can be employed to mitigate the problem.
If you have any queries, please contact Associate, James Lau Jian Hui (ljh@lh-ag.com), or his team Partner, Chan Mun Yew (myc@lh-ag.com). They have notable experience in handling disputes relating to the Technology, Media & Telecommunication (TMT) industry.
[ESG] Role of Legal Professionals in Shaping ESG Standards
Undoubtedly, lawyers play a crucial role in interpreting ESG regulations, mitigating legal risks, and assisting organisations in integrating ESG criteria into their operations and strategies.
This alert summarizes the key points discussed by our author, Nurul Aisyah Hassan, during her recent presentation at the ESG National Conference, which highlights the key areas in which legal professionals may influence sustainable practices and ensure adherence to ethical standards.
If you have any queries, please contact the author, Nurul Aisyah Hassan (nah@lh-ag.com).
[TAX, CUSTOMS & TRADE] Special Alert: Crypto in the IRB’s Crosshairs: Debunking 3 Myths for Traders and Dabblers
The recent launch of Ops Token by the Inland Revenue Board (“IRB”), in conjunction with the Royal Malaysian Police, highlights the IRB’s commitment to combating revenue leakages from cryptocurrency (“Crypto”) activities. This initiative also underscores the urgent need for those involved in Crypto activities to reassess their tax exposure and risks.
In this alert, we debunk three common myths:
• Are virtual transactions safe from scrutiny?
• Are no taxes payable if you do not trade for a living?
• Are no taxes payable if you trade in foreign Crypto assets only?
If you have any queries pertaining to the tax treatment of Crypto transactions, please contact our Partner Chris Toh Pei Roo (tpr@lh-ag.com).
[INTERNATIONAL ARBITRATION] Conditional Arbitral Awards – Are They Final?
If an arbitration award contains certain conditional reliefs or orders, can an arbitrator subsequently revisit the case to ascertain whether these conditions have been fulfilled? Can a conditional award be considered as a final award? These issues were considered by the Singapore Court of Appeal in the recent decision of Voltas Ltd v York International Pte Ltd [2024] SGCA 12.
This alert discusses the key takeaways from Voltas Ltd v York International Pte Ltd and identifies the practical implications of this decision for arbitrators and parties to an arbitration.
If you have any queries, please contact author, Soh Zhen Ning (szn@lh-ag.com) or his team Partner, Crystal Wong Wai Chin (wwc@lh-ag.com).
[TAX, CUSTOMS & TRADE] Special Alert: CGT vs RPGT – A Flowchart Guide
The introduction of Capital Gains Tax (CGT) has significantly altered the tax landscape in Malaysia (see our Special Alert: Navigating Capital Gains Tax: Roadmap to a New Tax Landscape dated 26.2.2024). The interplay between CGT and the existing Real Property Gains Tax (RPGT) regime has raised many questions, particularly due to the various exemptions, amendments, and complexities introduced in recent months.
To assist in navigating these changes, the LHAG Tax Team has prepared a flowchart outlining the taxability of real property, RPC shares, and other capital assets under the RPGT and CGT regimes. Please note that the law is stated as of June 2024.
If you have any queries, please contact Partner, Chris Toh Pei Roo (tpr@lh-ag.com), or Pupil, Soon Jia Ying (jysoon@lh-ag.com).
[ESG] OSHA Amendments and Their ESG Impact in Malaysia
The recent amendments to the Occupational Safety and Health Act 1994 are set to come into effect on 1 June 2024. Beyond meeting legal obligations, these changes offer an opportunity for companies and businesses in Malaysia to strengthen and advance their ESG efforts.
If you have any queries, please contact the authors, Hoi Jack S’ng (hjs@lh-ag.com) and Tan Hooi Ping (hpt@lh-ag.com).
[EMPLOYMENT] Flexible Working Arrangements: A Comparative Analysis of the Laws in Malaysia and Singapore
Singapore introduced its Tripartite Guidelines on Flexible Work Arrangement Requests, set to take effect on 1 December 2024.
This article compares the regulatory approaches of Malaysia and Singapore, focusing on the similarities and differences, particularly in the examples provided for grounds for rejection of flexible work arrangement requests.
If you have any queries, please contact Associate, Summer Chong Yue Han (yhc@lh-ag.com), or her team Partner, Shariffullah Majeed (sha@lh-ag.com).
[TAX, CUSTOMS & TRADE] Special Alert: Too Early to the Party: Revenue’s Appeals Struck Out for Want of Locus | Taxpayers to Proceed with Legal Challenge to Seek Refund for Taxes Paid Pursuant to Unlawful Legislation
On 16.5.2024, the Court of Appeal (COA) unanimously struck out two appeals brought by the Inland Revenue Board (Revenue) against the Kuala Lumpur High Court’s (KLHC) decisions dated 13.9.2023. The KLHC had granted leave for two taxpayers to commence judicial review against the Revenue to seek refunds for taxes paid pursuant to Section 4C of the ITA, following the Federal Court’s decision in Wiramuda (M) Sdn Bhd v Ketua Pengarah Hasil Dalam Negeri [Rayuan Sivil No, 01(f)-38-08/2022(W)] that Section 4C of the ITA is unconstitutional. The COA agreed with the respondent taxpayers that the Revenue has no right of appeal as it was not yet a “party” at the leave stage. The COA’s decision is welcome in light of the Revenue’s practice of objecting to judicial review applications at the leave stage, rendering the “expeditious and cheap” process for seeking leave into a protracted and costly affair.
If you have any queries pertaining to applications for refunds of income tax erroneously paid, or any disputes with the Revenue arising from audits or investigations, please contact Consultant Dato’ Nitin Nadkarni (nn@lh-ag.com) or Partner Chris Toh Pei Roo (tpr@lh-ag.com).
[DISPUTE RESOLUTION] Special Alert: High Court Rules Against Former Group CEO Of MARA Corporation Sdn Bhd for Breach of Director’s and Fiduciary Duties
On 20.5.2024, the High Court allowed MARA Corporation Sdn Bhd’s (“MARA”) claim against the Defendant, MARA’s former Group Chief Executive Officer, for breach of director’s and fiduciary duties. MARA’s claim was founded upon, among others, the hiring of 25 employees within two weeks of taking office by the Defendant. The High Court ordered the Defendant to pay damages of RM 3.4 million and to indemnify MARA for all expenses incurred and to be incurred arising from the 25 employees’ industrial actions, if any liability is imposed against MARA.
MARA was represented by Partners Hoi Jack S’ng, Chng Keng Lung, Shaleni R Anpualagan, and Associate Teo Kah Min.
The High Court’s decision was also reported on The Edge Malaysia.
If you have any queries, please contact Partners Hoi Jack S’ng (hjs@lh-ag.com), Chng Keng Lung (ckl@lh-ag.com) or Shaleni R. Anpualagan (sra@lh-ag.com).