Chern & Co.

LIFTING THE CORPORATE VEIL IN INDUSTRIAL DISPUTES (NEW!14/8)

As a general rule, employees who are unfairly dismissed can only sue their direct employers, and not the parent company. This is because each Company is a separate legal identity, and a subsidiary is separated from its holding Company. In the recent case of Ahmad Zahri bin Mirza Abdul Hamid v Aims Cyberjaya Sdn. Bhd. …

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Making Sure A Business Is Worth Buying: Always Conduct A Robust Due Diligence

Many buyers think of skipping due diligence as they believe they already have a clear understanding of the target company. But it is vital for buyers always to remember that there may still be aspects of the company which they don’t know about, or intentionally hidden from them. Hence, due diligence is a crucial stage …

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Are Employers Required to Warn Their Probationers In Senior Roles about Their Poor Performance Before Dismissing Them?

Under our Employment Law, it is a settled rule that a probationer enjoys similar rights as a full-time employee. As such, you are not allowed to dismiss your probationer without “just cause and excuse”. Having said that, “poor performance” during the probation period can be accepted as just cause and excuse for dismissal. “Poor performance” …

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Covid-19 Updates: Data Protection Obligations for Employers During the RMCO

On 7th June 2020, the Government announced the Recovery Movement Control Order (“RMCO”) effective 10th June 2020 through 31st August 2020. Under the RMCO, additional restrictions are lifted, and most businesses are allowed to operate with adherence to strict standard operating procedures (‘SOP’). During the RMCO, businesses, particularly the retail businesses are required to take …

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Everything You Need To Know About The Rights of A Probationer

The realisation that you may have had a bad hire is worrisome. During this probation period, you as the Employer can assess their abilities and suitability in the Company. Likewise, the probationer can determine if he or she wants to stay with the organisation after the period ends.   Notably, there is no legal requirement …

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FAQs on the ‘Wage Subsidy Programme’

In this article, we aim to provide some guidance about the Wage Subsidy Programme for all business owners, and SMEs in Malaysia. It should be pointed out that the financial incentives under the Wage Subsidy Programme is to encourage Employers to continue hiring eligible employees in ongoing jobs without resorting to retrenchment. In other words, …

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What Is The New Section 17A MACC Act, and How Are Your Businesses Affected?

“Corporate Liability Provision” Under Section 17A The new Section 17A MACC Act [1], which will come into effect 1st June 2020, (hereinafter referred to as “the new provision”) is of great significance for all companies incorporated in or carrying on business in Malaysia. The new provision will impact businesses of all shapes and sizes regardless …

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6 Reasons Why You Should Have A Shareholders’ Agreement.

A Shareholders’ Agreement is a legally binding contract entered between the shareholders of a company. Although, it is not a legal requirement, having a well-prepared agreement drafted by your lawyers can act as a safeguard. The main purpose of this important agreement is to protect the shareholders’ investment in the company and to regulate the …

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COVID-19 UPDATE: For Creditors: What You Should Know About Our Modified Winding-Up Law

The spread of Coronavirus (Covid-19) has affected businesses worldwide.   One of the biggest problems for businesses is getting paid promptly by their customers, particularly during this Covid-19 pandemic, the reason is that, when they pay you late or do not pay you at all, it may impact your Company’s cash flow, or the ability …

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How To Deal With Online Defamation? l Defamation On Social Media

In an age where Facebook & Google reviews are CENTRAL to a business’ reputation, it can be particularly stressful for business owners to receive FAKE, or DEFAMATORY ONLINE REVIEWS on social media. Research shows that 1 negative review drives away 22% of prospects, around 30 customers. The percentage of lost customers increases with an increase …

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