08 / FAQ

Questions businesses often ask.

GENERAL
What types of clients does the firm act for?

We act for corporations, financial institutions, property developers, contractors, multinational companies, family-owned businesses, investors and SMEs across a range of industries.

How does the firm charge for its services?

Fee arrangements are discussed and agreed with each client at the outset, based on the nature and complexity of the matter. We are happy to discuss this during an initial consultation.

Does the firm act for both claimants and defendants?

Yes, subject to conflict checks. We regularly act for parties bringing claims as well as parties defending them.

COMMERCIAL LITIGATION
What should a company do after receiving a letter of demand?

Preserve relevant documents, identify the contractual position, check deadlines and seek an early assessment before making substantive admissions.

How long does commercial litigation in Malaysia typically take?

It varies significantly depending on the complexity of the matter, the court involved, and whether the decision is appealed. We can give a more specific estimate once we understand the facts of a matter.

What is the difference between negotiation, mediation and litigation?

Negotiation and mediation are consensual processes aimed at reaching an agreed resolution, while litigation is a court process that results in a binding judgment. Many disputes are resolved through negotiation or mediation before reaching trial.

Can urgent relief such as an injunction be obtained before a full trial?

Yes, in appropriate cases. Malaysian courts can grant interim injunctions where there is a serious question to be tried and the balance of convenience favours urgent relief.

CONSTRUCTION & INFRASTRUCTURE
When should a developer or contractor consider CIPAA?

Where a qualifying construction contract gives rise to a payment dispute, CIPAA may provide a statutory adjudication route. The contract and facts should be reviewed first.

What happens if a CIPAA adjudication decision is not honoured?

An adjudication decision is enforceable in the same way as a court judgment, subject to any application to set it aside or stay enforcement.

Can a construction dispute be resolved without stopping the project?

In many cases, yes. Payment and variation disputes are frequently managed alongside an ongoing project through adjudication or negotiation, without halting works.

CORPORATE & SHAREHOLDER DISPUTES
What can a minority shareholder do if excluded from management?

Depending on the facts, a minority shareholder may have a claim for oppression, or other remedies under the company's constitution or a shareholders' agreement.

What is the difference between an oppression action and a derivative action?

An oppression action addresses harm to a shareholder's own interests, while a derivative action is brought on the company's behalf where the wrong was done to the company itself.

Can a shareholder dispute be resolved without going to court?

Often, yes. Negotiated share buy-outs, restructuring of shareholding, or mediation are commonly explored before litigation is commenced.

RESTRUCTURING & INSOLVENCY
What is the difference between judicial management and a scheme of arrangement?

Judicial management places a company under a court-appointed judicial manager with a moratorium on creditor action, while a scheme of arrangement puts a restructuring proposal to creditors or shareholders for approval.

What happens to a company's contracts during judicial management?

The company generally continues to operate under the judicial manager's control, with a moratorium restraining most enforcement action while a rescue plan is worked out.

When should a company consider seeking restructuring advice?

As early as possible once financial distress becomes apparent. Acting early preserves the widest range of options for both the company and its directors.

DEBT & ASSET RECOVERY
Can your firm assist financial institutions with recovery?

Our practice includes debt and asset recovery, enforcement, insolvency and commercial disputes. The precise scope should be discussed based on the institution's requirements.

What enforcement options are available after obtaining judgment?

Common options include a writ of seizure and sale, garnishee proceedings, judgment debtor examinations, and, where appropriate, bankruptcy or winding-up proceedings.

Is it always worth pursuing a debtor through the courts?

Not necessarily. The right approach depends on the debtor's assets, existing encumbrances, and the realistic prospects of recovery, which should be assessed before committing to proceedings.

PROPERTY & CONVEYANCING
What should a purchaser check before signing a sale and purchase agreement?

Title, any caveats or encumbrances, the vendor's authority to sell, and outstanding statutory or maintenance obligations attached to the property.

Can a financial institution be affected by a dispute between a developer and purchaser?

Yes. Disputes over defects or delayed completion can affect the value, marketability or priority of a lender's security over the property.

Does the firm act for both developers and purchasers?

Yes, subject to conflict checks, across sale and purchase transactions, financing arrangements and related disputes.

EMPLOYMENT & INDUSTRIAL RELATIONS
Can you assist employers with domestic inquiries?

Yes. Employment practice includes disciplinary proceedings, domestic inquiries, misconduct, termination, retrenchment and related disputes.

What is considered a genuine reason for retrenchment?

Genuine business reasons include role redundancy, reorganisation, or a real downturn in business, supported by documentation, rather than being used to remove a specific employee.

How quickly should an employer act once misconduct is discovered?

Promptly. Early action helps preserve evidence and reduces the risk of delay being used to challenge the fairness of any subsequent process.

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When the legal issue matters, strategy matters.

Contact us regarding commercial disputes, construction, corporate matters, recovery, property, employment and other business-related legal issues.

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