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Lessons from the Pesaka Litigation

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Federal Court gives important judgment affecting corporate trustees and parties to trust deeds.   Introduction The decision of the Federal Court in the recent cases of CIMB Bank Berhad v Maybank Trustees Berhad and other Appeals (Civil Appeals No. 02(f)-27-04/2012(W); 02(f)-28-04/2012(W); 02(f)-29-04/2012(W); 02(f)-30-04/2012(W); 02(f)-33-04/2012(W), 10 February 2014) has established numerous important principles relating to the law and [...]
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Inadequacy of Damages: A Moral Hazard

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Federal Court rules that contractual stipulation that damages not adequate remedy not binding on courts.   It is well-established that a party who applies to the court for interim injunctive relief, usually to preserve the status quo or to prevent irreparable damage from being done to that party pending the disposal of a case, must [...]
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Commercial Contracts and Fiduciary Relationships

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Federal Court clarifies commercial contracts unlikely to give rise to fiduciary relationships.   Parties to sophisticated commercial agreements, which are often arrived at and agreed upon after a protracted period of careful negotiation, compromise and the incurring of substantial legal costs, have a legitimate expectation that their commercial relationship will be governed and regulated by [...]
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Quistclose Trusts: Primacy of Purpose?

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Federal Court upholds Quistclose trust in favour of corporate trustee.   The imposition of trusts of a proprietary nature in a purely commercial context has always been a controversial issue. Competing and conflicting policies, such as commercial certainty and the security of settled transactions, protecting the interests of secured and non-secured creditors and the fair [...]
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Weng & Co featured in Malaysia SME®

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Views on Companies Bill 2013 published in Issue 116 of Malaysia SME ® business newspaper.   The Malaysia SME® business newspaper recently contacted Weng & Co for its views on the proposed Companies Bill 2013. Our views have been published in the cover story for Issue 116 (October 19 - November 1, 2013) of MALAYSIA SME® entitled "Critical [...]
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The Myth of Good Faith

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Court of Appeal affirms there is no free standing contractual duty of good faith.     "The commercial world bases its transactions ... upon the hypothesis of honesty." It is difficult to share this overly optimistic view expressed by the great Bowen LJ nearly 130 years ago in Easton v London Joint Stock Bank (1886) 34 Ch [...]
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Suspend At Your Own Risk

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Federal Court considers effect of suspension of contracts by mutual agreement.   The recent landmark decision of the Federal Court in Yong Toi Mee & Anor v Malpac Capital Sdn Bhd & Anor (Civil Appeal No. 02(f)-69-10/2012(A), 4 September 2013) has established important principles governing the rights and obligations of parties to a contract which has been [...]