Monthly Archives: July 2020

Section 314 of Companies Act: court orders one- member extraordinary general meeting

In February 2020 a high court allowed a shareholder to convene a one-member extraordinary general meeting (EGM) of a family-run company in Lee Yee Wuen v Kien Yiap Trading Sdn Bhd.(1) In applying for a court-ordered meeting, applicants must prove that it is otherwise impracticable to hold the meeting. This case is significant to the…

Posted in ILO

Apex court rules that foreign employee on successive fixed-term contract is permanent employee

Employers can offer fixed-term contracts to their employees (often for economic or management reasons). However, such prerogative is subject to scrutiny by the Malaysian courts so that it does not fetter employees’ rights in terms of employment security. In Ahmad Zahri bin Mizra Abdul Hamid v AIMS Cyberjaya Sdn Bhd ([2020] 1 LNS 494), the…

Posted in ILO

Business Continuity Post-MCO: From Financial Distress Management to Corporate Rescue Mechanism

The unprecedented outbreak of COVID-19 worldwide has placed the global economy in recession since late March. Business continuity is a major concern for business owners in view of the world economy outlook, including entrepreneurs in Malaysia following the implementation of 28-day Movement Control Order to control the pandemic outbreak. Local businesses have been reported to…