This article is third in a series entitled A New Corporate Landscape: Key Changes under the Companies Bill 2015 that our clients should know about.
As alerted in our previous issue of The Legal Link, the Companies Bill 2015 has received Royal Assent and shall come into force next year. We continue our series setting out the key changes under the new Act, and this time round, will examine changes relating to the accountability of directors in the running of companies.
Key Change 5: Heavier penalties for directors under the Act
The new CA 2016 imposes harsher sanctions for directors who breach the Act. The RM30,000 fine under the present Companies Act 1965 has been raised to a whopping RM3,000,000.00. Hence, directors found guilty of breaches constituting serious offences, may find themselves facing a five year term of imprisonment, a fine of RM 3,000,000.00 or even both without the possibility of compound (the CA 2016 has taken away the power of the Registrar to compound offences). Continue reading “No hiding in the shadows: Increased director’s accountability under Companies Act 2016”
Liew Siew Pen provides a brief roundup of the 2017 Budget features affecting the housing industry
Malaysia Budget 2017 has successfully been tabled by the Prime Minister Datuk Seri Najib Tun Razak. For the housing industry, there are several innovative measures, including the “step-up” end financing scheme and exemption of stamp duty, which will be implemented as part of the initiatives to promote home ownership. Stamp duty on instruments of transfer for properties costing RM1,000,000.00 and above will also be increased from the current rate of 3% to 4% in curbing speculative buying.
The key elements of the Budget affecting the housing industry are summarised below:
Continue reading “The 2017 Budget and the Housing Industry”
Mira Syahida explains the difference between a hire purchase transaction and credit sale transaction
Credit sale in general is defined as purchases made by a consumer that do not require a payment made in full at the time of purchase.
In Malaysia, credit sale is governed under Consumer Protection (Credit Sale) Regulations 2012 which came into operation on 1st October 2012. These Regulations apply to all types of businesses that are required to be registered under any laws relating to the registration of companies or businesses except co-operative societies registered under the Co-operative Societies Act 1993. The most common credit sale in Malaysia involves the purchase of home appliances, furniture and electrical items with seller or credit facility provider such as Courts, Singer and AEON.
According to the Regulations, the term “credit sale” means the sale of goods where –
(a) credit facilities are provided by the seller or the credit facility provider to the purchaser in the sale transactions of such goods;
(b) the purchaser is a consumer;
(c) the goods involved in the credit sales are as interpreted in the Act;
(d) the credit payment involves payment by installment;
but does not include sales where full payment is made via credit card.
Continue reading “Credit Sale vs Hire Purchase: A Comparison”
In this two part series, Liew Siew Pen explains the legal framework and procedures governing compulsory land acquisition
The law of land acquisition is principally concerned with the rules governing the procedures to be followed in acquiring the land by compulsory means and with the awarding of compensation to the dispossessed landowner.
The rights of a property owner in Malaysia are governed by the following legislations:-
1) The Federal Constitution;
2) The National Land Code 1965 /Land Ordinance (Sabah Cap 68) 1950/Sarawak Land Code (Cap.81) 1958;
3) The Land Acquisition Act 1960/Land Acquisition Ordinance (Sabah Cap. 69) 1950/Part IV of the Sarawak Land Code (Cap.81) 1958.
Under Article 13 of the Federal Constitution, the nature and extent of property rights of a person are as follows:
(1) No person shall be deprived of property save in accordance with law.
(2) No law shall provide for compulsory acquisition or use of property without adequate compensation.
The above provisions ensure that a person is not deprived of his property without adequate compensation being made.
Continue reading “Land Acquisition – Balancing the needs of two parties”