Corporate Law
Partnership Agreements in Malaysia: A Comprehensive Guide
Definition of Partnership Agreement A partnership agreement is a written contract that expresses an understanding between two or more parties wishing to do business together. This document covers the business’s nature, each partner’s financial contribution, profit sharing, roles, responsibilities, decision-making, dispute resolution, and exit strategy. “A partnership agreement is a guiding light, leading to a successful business collaboration. It brings clarity, defines responsibilities, and prevents misunderstandings that could harm the...
Corporate Law
Non-Disclosure Agreement for Startups
A non-disclosure agreement (NDA), or a confidentiality agreement, is an agreement that sets the terms and conditions of a confidential relationship between two or more parties. It is a legal document for businesses and individuals who wish to protect their confidential information from being shared or used without their permission. Let’s explore the key elements of an NDA and consider the benefits of signing an NDA as a startup and...
Corporate Law
Hierarchy of Courts in Malaysia
In the governing framework of Malaysia, three critical pillars exist: the Executive, Legislative, and Judiciary branches. The judiciary is the court system that decides legal disputes, defends the law, and applies it in legal cases. In every nation, the judiciary plays a crucial role in deciphering and administering the law and resolving disputes between the citizens as between the citizens and the state. The judicial system is the most expensive...
Corporate Law
Facts About Oral Contracts You Need to Know in Malaysia
Contracts in Daily Life Contracts are an integral aspect of modern society. Any agreement between two or more parties, whether written or oral, that creates legally binding responsibilities is called a contract. Some contracts are written, but there are also implied (formed through the parties’ conduct) and oral contracts. But, when asked to define a contract, most people will refer to a physical agreement, such as those papers signed by...
Corporate Law
A Guide to Different Types of Business Agreements
Agreements as Important Tools in Business According to the Malaysian Department of Statistics, new business registrations in Malaysia rose by 5.3% during the COVID-19 pandemic. These businesses use various contracts to operate efficiently and legally. In Malaysia, business agreements come in various types and formats. Each type serves a unique purpose. Understanding and leveraging them as tools can go a long way in protecting a company’s interests, preventing legal disputes,...
Corporate Law
Non Disclosure Agreement: How and When to Use It
There are several occasions in a business where you may wish to exchange confidential information with a third party. The key to doing so securely is ensuring that the other party is required to maintain your confidential information and not use it against you. Non-Disclosure Agreements are a standard method for protecting the confidentiality of privileged information shared with a third party. A non-disclosure agreement (“NDA”) is a legally binding...
Corporate Law
Copyright Law in Malaysia
Understanding copyright laws is more important than ever in today’s increasingly digital world. This is particularly true in Malaysia, where diverse creative industries flourish. This article explores the basics of copyright law in Malaysia, discussing the rights granted under the law, the forms of protection available to copyright holders, and the legal mechanisms to enforce these rights. Copyright and its examples Copyright law is a subset of intellectual property (IP) law that...
Corporate Law
Preventing a Winding-up with Fortuna Injunctions
A creditor can apply to the court to have a company liquidated under the Companies Act 2016 (“the Act”) if the debt is unpaid when it is due. A creditor who intends to wind up a company must first serve a statutory notice under Section 466 of the Act (“S.466 Notice”) to demand the sum due before filing a winding-up petition. After receiving the S.466 Notice, the debtor company has...
Corporate Law
Registration of Trademarks in Malaysia
Concept of Intellectual Property Intellectual property (IP) rights are any rights associated with intangible assets owned by a person or company. Intangible assets refer to non-physical property, including the right of ownership in intellectual property. It is a legal concept that grants exclusive rights to the creator or owner of intangible assets. There are four significant types of protections for IP: Copyright – This branch of IP laws protects creative...