Lenders and Borrowers: What you need to know about the Companies Act 2016

 

In this article, we highlight certain aspects of the Companies Act 2016 (“CA 2016”) that have implications for Lenders and Borrowers.

A) Execution of documents: common seal is optional

Section 61 of CA 2016 now provides that a company may, but does not need to have the common seal.

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Madrid Protocol: Multi-country trade mark applications are on the horizon

 

One application = trade mark protection in multiple countries. It is only a matter of time before business owners can avail themselves of the harmonized process under the Madrid Protocol.

Malaysian business owners who want to expand beyond the country into other markets and to protect their trade mark in the process, would no doubt have been told that they would have to file separate applications in each country of interest. This would involve engaging the services of trade mark agents in the respective countries, and the costs and time involved in overseeing and coordinating the various applications would have added to the burden of expansion.

There is however, an alternative procedure available on the horizon, when Malaysia accedes to the Madrid Agreement Concerning the International Registration of Marks (“Madrid Protocol”).

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Legislation Update – Bankruptcy (Amendment) Bill 2016 passed by Dewan Rakyat

 

The Bankruptcy (Amendment) Bill 2016 was passed by the lower house of Parliament in March 2017. The next step will be for it to be passed by the Dewan Negara before it receives Royal Assent.

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Update: Bursa Malaysia is Reviewing the Listing Requirements

 

In view of the coming into force of the Companies Act 2016, Bursa Malaysia had, in March 2017, issued a consultation paper to seek public feedback on its proposed review of Listing Requirements for ACE and Main Markets

According to Bursa, the key areas of review under the Listing Requirements include the following:

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Legislation Update – Amendments to the Solicitor’s Remuneration Order

 

The Solicitors’ Remuneration (Amendment) Order 2017 (“SRAO”) has been gazetted and came into effect on 15th March 2017. The SRAO increases the rate of the scale of fees to the First Schedule (fees for sales and transfers) and the Third Schedule (fees for charges, debentures, and other security or financing documents) of Solicitors’ Remuneration Order 2005 (“SRO”), which sets out the scale of fees payable in property transactions, including sale and purchase transactions (subsale and developer transactions) and charges, debentures, and other security or financing documents.

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To franchise, or not to franchise?

 

Franchising has become the fastest growing way of doing business, but is this the only option?

So, Loob Holding recently lost the lucrative Chatime master franchise.

Up till now, Loob Holding has managed to build a bubble tea empire on the business approach of franchising. What is franchising exactly, and how does this differ to other methods of expanding your business, say licensing or even distributorship? Continue reading “To franchise, or not to franchise?”

Share and Capital Maintenance under the Companies Act 2016

This article is fifth in a series entitled A New Corporate Landscape: Key Changes under the Companies Bill 2015 that our clients should know about.

In this article, we outline the major changes relating to the management and restructuring of share capital under the Companies Act 2016 (“new Act”).

Key Change 10: No Par Value for Shares

Par value is the minimum price at which shares can be issued. Under the old Companies Act 1965, shares are issued with a par or nominal value and companies are required to declare authorised share capital. The new Act abolishes this concept.

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Welcome, Companies Act 2016: 5 immediate things to take note of

 

While many of us were overdosing on mandarin oranges and pineapple tarts last week, the Companies Act 2016 (“the new Act”) came quietly into force. Although its debut may have been overshadowed by the CNY celebrations, its far-reaching effects will no doubt become apparent, moving up your priority list long after the mah-jong table has been stored away, and the last yee sang for the year tossed.

To assist you in getting a quick handle on the new Act, here are 5 things to immediately take note of:

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New Companies Act 2016: Legal Link Alert

The Companies Commission of Malaysia has announced that it will start enforcing the Companies Act 2016 in stages from 31st January 2017. Hence, in the midst of the coming week’s Chinese New Year celebrations, corporate Malaysia will be waking up to a new landscape. Below is a brief checklist to help assess your level of preparedness for the coming into force of the Companies Act 2016.

Alternative Corporate Rescue Mechanisms under the Companies Act 2016

 

This article is fourth in a series entitled A New Corporate Landscape: Key Changes under the Companies Bill 2015 that our clients should know about.

As indicated in our previous issue, this time we will be discussing the changes relating to insolvency rescue.

Key Change 9: New Corporate Rescue Mechanisms introduced

Under the present provisions of the Companies Act 1965, an insolvent company can only enter into receivership, wind-up or commence a scheme of arrangement with its creditors. The new Act sets out two further alternative corporate rescue mechanisms to assist companies in restructuring their debts and avoid a winding up scenario.

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