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Understanding Garnishee Proceedings in Malaysia.

What happens when you win and the losing party in a Court case refuses to pay you? Yes, you have won the case, and yes, the Judge has pronounced the Judgment in your favour. What can you do when this happens? In this event, you should consider taking out Garnishee Proceedings to enforce the Court…

Fraudulent Misrepresentation in Business

Recently, the most common complaints we received from our clients involved the buying and selling of personal protection equipment (“PPE”). We have seen businesses fraudulently claiming that they have ready stock of gloves or PPEs. Once payment is made, the Buyers would often realize that the Seller could never meet order requirements in time, and their…

Probationary Employees: What Employers Need to Know

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 under…

Buying a SMEs Business: An Overview of Legal Due Diligence

A due diligence process seeks to reveal the potential risks hidden within a company. For this reason, it is widely and commonly used in company/business acquisition. While due diligence is recognized as a process of investigating, analyzing and assessing the relevant documents about the target company, for the purposes of the article, we will focus…

Making Sure A SMEs Business Is Worth Buying: Legal 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 to always remember that there may still be aspects of legal liabilities that were intentionally hidden from them. Due diligence can you help you identify the possible red flags…

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

Under Malaysia employment laws, a probationer enjoys similar rights as a full-time employee. As such, an Employer is not allowed to dismiss her probationer without “just cause and excuse”. Having said that, a probationer can be dismissed for poor performance. In simpler terms, a “poor performance” is when the probationer’s job performance falls below the…

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…

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,…

New Anti Corruption Law Malaysia, 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…

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…

Winding Up a Company in 2021

New Update: On March 2021, our Prime Minister has officially announced that the statutory demand threshold for winding-up petitions will be permanently kept at RM50,000! In this article, we will explain the basic legal concept of winding up, and the New Measures taken by our government to modify our existing winding-up laws, and what you…

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…

Workplace Sexual Harassment Malaysia: FAQs on Workplace Harassment

Based on a recent survey, over a third of Malaysian women experienced sexual harassment at workplaces. In most cases, the victims chose to remain silent because of embarrassment, fear of retribution, or thought that speaking out would make no difference.   In this article, we aim to raise awareness on workplace sexual harassment from the law…

CHERN & CO’S RESPONSE TO COVID-19.

A Message to Our Valued Clients & Visitors. Following the Government’s Movement Control Order (MCO) announced on 16.03.2020, we wanted to reach out with a brief update on how our team at C&C is working to ensure your service is 100% uninterrupted during this time. The law firm remains fully operational and accessible to existing…

COVID-19 Update: Unfair Dismissal in Malaysia.

The Malaysian Government has issued a Movement Control Order (“MCO”) to contain the spread of Coronavirus (Covid-19), taking effect from 18th March to 28th April. During this period, all government and private business premises are forced to shut down, save for essential services in areas such as utilities, telecommunications, transport, banking, health, and food supply.…

5 Common Questions on Debt Recovery

1. What are the steps to recover my debt? First, it is advisable that you send a Letter of Demand (“LOD”) to the debtor. It is a letter which formally demands the debtor to pay the amount of money which is owed, and also put the debtor on notice that legal action may be taken against them.…

Movement Control Order: FAQ On Contracts

The Movement Control Order (“MCO“) has forced many businesses to shut down temporarily, and many contracts could not be proceeded due to this movement restriction.   This has raised concerns to businesses, as there may be a disruption in the supply chain, closure of office premises, or an inability to make delivery of certain products.…

Exemption Clause: Can A Party Exclude His Liability In A Contract?

Exemption clauses, or often being called as “disclaimers”, are terms in a contract by which a party seeks to exclude, or limit liabilities for the breach of contract or for some torts. There are 2 types of exemption clause, (1) Exclusion Clause; and (2) Limitation Clause.   Here are some common examples:   Exclusion Clause:…

Legal Tips: Starting Your E-Commerce Business

1. Register your eCommerce Business First of all, before engaging in any business, you must determine what kind of business entity you want to form. Which type of entity is the most suitable will largely depend on the size, nature, and the needs of your business. In Malaysia, there are generally 4 different types of…

Movement Control Order (MCO): Common Employment Issues

To control the spread of the Coronavirus pandemic (Covid-19), the government announced the Movement Control Order (MCO) on 16.3.2020. Following this, many businesses are required to close their premises from 18th March to 14th April 2020.   This announcement has affected businesses and companies across the country, and has caused great concerns among both employers and…