When a director engages in misconduct—such as abusing their position, acting in bad faith, or failing to comply with legal requirements—they may face serious consequences. 

These can include civil claims, criminal liability, regulatory action, and personal exposure that goes beyond the company itself, making director misconduct a matter with far-reaching legal and financial implications.

What Constitutes Director Misconduct in Malaysia

Director misconduct in Malaysia generally refers to situations where a director fails to act honestly, responsibly, or in the best interests of the company. Common examples include breaching fiduciary duties, misusing company funds for personal benefit, placing themselves in a conflict of interest, or making decisions that benefit certain parties at the expense of the company. 

Directors may also be considered to have acted improperly if they go beyond their authority, hide important information, or fail to exercise proper care in managing the company’s affairs. Under the Companies Act 2016, directors are expected to act in good faith, with reasonable care and skill, and for a proper purpose. 

Engaging in reckless trading, approving risky transactions without proper consideration, or neglecting the company’s financial health can also amount to misconduct. When these duties are ignored, directors may be held personally accountable for the consequences that follow.

Key Legal Duties Directors Owe to the Company

Directors in Malaysia have clear legal duties to act honestly and responsibly when managing a company. They must act in good faith, make decisions in the company’s best interests, and exercise reasonable care, skill, and diligence in carrying out their role. 

This means staying informed, asking the right questions, and not simply approving decisions without proper consideration. Directors are also required to avoid misusing their position or confidential information for personal gain and must comply with company laws and regulatory requirements. 

Failing to meet these duties can expose directors to personal liability, as the law expects them to protect the company, its shareholders, and its stakeholders through responsible and lawful conduct.

Civil Liability Arising from Director Misconduct

When a director engages in misconduct, they can be held personally liable for losses suffered by the company, its shareholders, or even creditors. This means the director may be required to pay damages, return misused funds (restitution), or stop certain actions through court injunctions. 

In serious cases, the court may also order the director to be disqualified from managing a company.  Shareholders are not powerless in these situations — they may bring derivative actions on behalf of the company or file oppression claims if the director’s conduct is unfair or harmful. 

These civil remedies exist to protect the company and ensure directors are accountable for their actions.

Criminal and Regulatory Consequences for Directors

In more serious cases, director misconduct can lead to criminal charges and regulatory action under Malaysian law. This may happen where a director is involved in fraud, makes false or misleading statements, fails to keep proper records, or commits offences related to insolvency. 

Such misconduct can result in hefty fines, penalties, or even imprisonment, depending on the nature and severity of the offence. Regulatory authorities such as Suruhanjaya Syarikat Malaysia (SSM) and other enforcement bodies have the power to investigate directors and take action for breaches of statutory duties, including failures in required filings and compliance. 

These consequences highlight the importance of directors understanding their legal responsibilities and ensuring strict compliance with company and regulatory laws.

Conclusion

Director misconduct in Malaysia carries serious legal risks that can affect not only the company, but directors personally as well. Breaches of duty may lead to civil claims, criminal charges, regulatory action, and even disqualification from managing a business. 

Maintaining proper governance, transparency, and compliance with company law is essential to avoid costly disputes, litigation, and enforcement action that can damage both personal and business reputations.

If you are a company director, shareholder, or business owner facing concerns over potential misconduct, disputes, or regulatory investigations, seeking early legal advice is crucial. Get in touch with us, and we will advise you on your legal obligations and risks, while guiding you in protecting your interests and ensuring compliance with Malaysian corporate law.

Are Shares Considered Part of a Deceased’s Estate?

In Malaysia, shares held by a deceased shareholder are considered assets that form part of the deceased’s estate and are subject to estate administration. Unlike personal property, shares—especially in private companies—are governed not only by succession laws but also by the company’s constitution and statutory requirements. Upon death, the shares cannot be freely transferred or dealt with until the estate is properly administered, which may temporarily suspend voting or management rights attached to those shares. Understanding this distinction is crucial, as it directly affects control, decision-making, and the smooth continuation of the company’s affairs.

Role of the Company Constitution and Shareholders’ Agreement

The company’s constitution and any shareholders’ agreement play a critical role in determining what happens to a deceased shareholder’s shares in Malaysia. These documents often contain provisions that restrict or regulate share transfers upon death, such as pre-emption rights requiring shares to be offered to existing shareholders first, compulsory buy-back clauses, or specific valuation mechanisms to determine the share price. Some agreements may also require director or shareholder approval before any transfer can take place. Such provisions are designed to preserve control and stability within the company, but they can also significantly affect how and when the deceased’s shares are dealt with during estate administration.

Probate or Letter of Administration and Share Transmission

Before a deceased shareholder’s shares can be legally transmitted or dealt with in Malaysia, a Grant of Probate or Letters of Administration must first be obtained. This legal authority appoints personal representatives—executors or administrators—who are empowered to manage the deceased’s estate, including shareholdings. Until the grant is issued, the shares generally remain frozen, and voting or transfer rights cannot be exercised. Once obtained, the personal representatives may apply to the company to register the transmission of shares in accordance with the company’s constitution and applicable laws, allowing the shares to be transferred to beneficiaries or otherwise dealt with as part of the estate administration process.

Rights of Beneficiaries vs Powers of Directors

When a shareholder dies, there is an important distinction between beneficial ownership and legal ownership of the shares. While beneficiaries may be entitled to the economic benefits of the shares under the estate, legal ownership remains with the deceased’s personal representatives until formal transmission is completed. In most cases, beneficiaries cannot exercise voting rights, attend meetings, or influence management decisions before the shares are formally registered in their names, although dividends may be held on trust for them. During this interim period, directors must continue to act in the best interests of the company, balancing the rights of the estate with their fiduciary duties and the company’s constitutional requirements.

Conclusion

Proper succession planning for shareholdings is essential to avoid disruption to both family harmony and business continuity when a shareholder passes away. Without clear arrangements, issues relating to control, dividends, and management can quickly give rise to uncertainty and disputes. Early planning through well-drafted wills, buy-sell agreements, and clear corporate documentation helps ensure that shares are dealt with smoothly and in accordance with both succession and company law, reducing the risk of conflict and operational disruption.

Not sure how your shares, or those of a loved one, will be dealt with upon death? Get in touch with us today — our team can help you plan and manage share succession, estate administration, and corporate arrangements in compliance with Malaysian law, ensuring business stability and protecting the interests of all parties involved.

What Constitutes a Breach of Contract Under Malaysian Law

Under Malaysian law, a breach of contract arises when a valid contract—formed under the Contracts Act 1950 through offer, acceptance, consideration, and intention to create legal relations—is not performed according to its agreed terms. A breach may take the form of an actual breach, where a party fails to perform or performs defectively, an anticipatory breach, where a party clearly indicates an intention not to fulfil its obligations before performance is due, or a partial breach involving incomplete or delayed performance. In practice, common Malaysian examples include failure to pay for goods or services, refusal to complete agreed work, or early termination of employment or commercial agreements without lawful justification.

Common Causes of Contractual Disputes in Malaysia

Contractual disputes in Malaysia commonly arise from non-payment for goods or services, failure to perform agreed obligations, or delays in performance that disrupt commercial arrangements. Disagreements also frequently occur over contract termination, particularly where one party alleges wrongful or premature termination without proper notice or justification. In employment and commercial contracts, breaches of confidentiality or non-compete clauses are another common source of dispute, especially when sensitive information or competitive business interests are involved. These issues often escalate into legal claims when parties are unable to resolve their differences through negotiation or settlement.

Legal Remedies Available for Breach of Contract

Malaysian law recognises several remedies for breach of contract, depending on the nature of the breach and the relief sought. The most common remedy is damages, which aim to compensate the innocent party for losses suffered due to the breach. In appropriate cases, the courts may grant specific performance to compel a party to fulfil its contractual obligations, or injunctions to restrain ongoing or threatened breaches. Other remedies include rescission, which sets aside the contract, and restitution, which restores any benefits unjustly received. When granting relief, Malaysian courts consider factors such as adequacy of damages, fairness, and whether the remedy sought is just and equitable in the circumstances.

Damages and How Courts Assess Compensation

In Malaysia, damages are the primary remedy for breach of contract and are assessed based on principles set out in the Contracts Act 1950. Courts generally award compensation for direct losses that naturally arise from the breach, as well as consequential losses that were reasonably foreseeable at the time the contract was formed. The innocent party is also under a duty to mitigate its loss, meaning reasonable steps must be taken to reduce the impact of the breach. When assessing compensation, Malaysian courts focus on placing the injured party in the position it would have been in had the contract been properly performed, rather than punishing the breaching party.

Conclusion

Understanding contractual rights and the remedies available under Malaysian law is essential before pursuing any legal action for breach of contract. The appropriate remedy—whether damages, specific performance, or other forms of relief—depends on the nature and severity of the breach, as well as the objectives of the aggrieved party. A clear appreciation of these options enables parties to make informed decisions and avoid unnecessary costs or ineffective enforcement.

Not sure which legal remedy best protects your contractual rights? Contact us today — our team can help you assess your position, identify the most effective remedies available under Malaysian law, and guide you through the enforcement or litigation process with clarity and confidence.

Blurred Lines Between Family Relationships and Business Roles

In many Malaysian family-owned businesses, informal arrangements and a reliance on trust often replace clear documentation, leading to blurred boundaries between personal relationships and corporate responsibilities. Issues commonly arise from unclear shareholding structures, undocumented loans between family members, overlapping family and management roles, and verbal agreements made without formal records. While these practices may work in the early stages of a business, they frequently create misunderstandings and disputes as the company grows or when relationships deteriorate. Without clearly defined rights and obligations, family disagreements can quickly turn into legal conflicts requiring resolution under Malaysian corporate and contract law.

Shareholding and Control Disputes Within Family Companies

Disputes over shareholding and control are among the most common causes of corporate lawsuits in Malaysian family companies. Conflicts often arise when family members disagree over share ownership, voting rights, dividend distribution, or the appointment and removal of directors, particularly where roles and expectations were never clearly formalised. Tensions are frequently heightened between majority and minority family shareholders, especially when allegations of unfair prejudice or misuse of control arise under the Companies Act 2016. When these disagreements cannot be resolved internally, they often escalate into legal action to protect ownership rights and corporate governance interests.

Succession, Inheritance, and Estate-Related Conflicts

Succession, inheritance, and estate-related issues frequently trigger corporate litigation in Malaysian family businesses, particularly following the death or incapacity of a key shareholder or founder. Problems often arise when shares are left frozen due to estate administration delays, conflicting wills, or the absence of clear succession and buy-sell agreements. Disputes may also occur between heirs seeking control or dividends and surviving directors who continue managing the company. Without proper planning, these situations can paralyse decision-making and lead to legal action to resolve ownership, control, and management rights under Malaysian law.

Breakdown of Trust Leading to Allegations of Misconduct

When trust breaks down within family-owned companies, personal conflicts often escalate into serious allegations of corporate misconduct. Disputes may lead to claims of breach of fiduciary duty, oppression of minority shareholders, misappropriation of company funds, or abuse of directorial powers by family members in control. In Malaysia, such allegations are commonly brought before the courts under company law to address unfair conduct and protect shareholders’ interests. As emotions intensify and confidence in internal governance erodes, legal intervention becomes a necessary mechanism to resolve disputes and enforce accountability.

Conclusion

Family feuds often evolve into corporate lawsuits when governance structures are weak, roles and rights are unclear, and succession planning is neglected. In family-owned businesses, unresolved personal conflicts can easily spill over into disputes involving ownership, control, and management, resulting in costly and time-consuming litigation. Proactive legal planning, clear documentation, and early dispute resolution can help prevent escalation and preserve both the business and family relationships.

Not sure how to manage or prevent disputes within your family business? Contact us Sim & Rahman today, our team can help you evaluate your current governance structure, resolve internal conflicts, and protect your corporate and personal interests before issues escalate into costly litigation.

Read one as this blog serves as your compass, charting the course through legal intricacies to safeguard land assets in Malaysia and fortify your wealth. Because for high-net-worth individuals like yourself, securing wealth isn’t just a pursuit; it’s a responsibility. And in this pursuit, knowledge becomes your trusted companion, ensuring that your financial legacy stands tall amidst the changing tides of time.

Understanding Malaysian Land Law

Before diving into the tactical aspects, let’s grasp the fundamentals. 

1. The Fundamentals

Malaysian Land Law isn’t a labyrinth of legal jargon; it’s a structured framework designed to govern the relationship between individuals and the land they own. At its core, it revolves around the concept of titles – legal documents that signify ownership. Understanding these titles is crucial; they’re the keys that define the rights and limitations associated with each parcel of land.

2. Land Classification

Not all land is created equal. Malaysian Land Law classifies land into various categories, each with its own set of rules. From agricultural land to residential and commercial zones, these classifications dictate permissible land uses, development restrictions, and even potential tax implications. Navigating this classification system is fundamental to ensuring your land aligns with your intended purpose.

3. Rights and Restrictions

Malaysian Land Law establishes a delicate balance by defining the rights of landowners alongside restrictions to prevent misuse. These restrictions may include zoning regulations, environmental considerations, and limitations on land development. Understanding these nuances ensures that your land dealings are not just legally sound but also aligned with broader societal and environmental considerations.

Key Strategies to Protect Land Assets in Malaysia

Asset protection isn’t a one-size-fits-all endeavor; it’s a thoughtful assembly of strategies tailored to your unique financial landscape. Here are three practical and actionable measures to fortify your assets against unforeseen challenges.

1. Strategic Titling and Ownership Structures

Ensuring that your properties are titled correctly is the first line of defense. It involves understanding the various types of land titles in Malaysia, such as freehold and leasehold, and strategically choosing the most fitting option. 

Additionally, adopting advanced ownership structures, like holding properties in corporate entities, can add an extra layer of protection. This strategic titling not only establishes a clear legal foundation for ownership but also shields your assets from potential threats.

2. Trusts as Guardians of Wealth

Establishing trusts is a powerful asset protection strategy. A trust is a legal arrangement that allows a third party, the trustee, to hold assets on behalf of beneficiaries. 

This mechanism not only facilitates efficient estate planning but also shields your assets from legal disputes and creditors. Trusts offer flexibility, allowing you to dictate how and when your assets are distributed, providing a level of control that is crucial for long-term wealth preservation.

3. Diversification for Risk Mitigation

Spreading your wealth across a diverse range of assets, from real estate to stocks and bonds, acts as a risk mitigation tool. This strategy minimizes the impact of a downturn in a specific sector and reduces the overall vulnerability of your portfolio. 

Diversification is akin to having multiple layers of defense – if one line falters, others remain intact, ensuring that your wealth withstands the unpredictable fluctuations of the market.

Navigating Land Taxation

In the dynamic landscape of land ownership, taxes are not adversaries; they are variables waiting to be harnessed strategically. Here are three ways to navigate land taxation, ensuring that your wealth not only complies with fiscal responsibilities but also emerges stronger in the face of financial considerations.

1. Tax Optimization through Land Use Planning

Consider land use planning as a tax optimization playbook. The strategic development and use of your land can significantly impact your tax obligations. Understanding zoning regulations and leveraging them to your advantage is key. 

For instance, if your land is designated for agricultural use, there might be tax incentives or lower tax rates. On the other hand, developing your land for a specific purpose, such as affordable housing, might unlock tax benefits. By aligning your land use with tax-friendly strategies, you not only comply with regulations but also optimize your tax burdens.

2. Utilizing Exemptions and Incentives

The realm of land taxation often comes with its set of exemptions and incentives. Local authorities may provide tax relief for specific activities, such as conservation efforts, heritage preservation, or eco-friendly developments. 

Being aware of these exemptions and incentives allows you to structure your land activities in a way that not only contributes to the community or environment but also results in potential tax savings. It’s a symbiotic relationship where your strategic choices align with both societal and financial goals.

3. Engaging in Regular Tax Audits and Assessments

Proactivity is the cornerstone of strategic tax management. Regular tax audits and assessments, conducted either internally or with the assistance of tax professionals, provide a real-time understanding of your tax position. 

This proactive approach ensures that you identify and address potential issues before they escalate. It’s not just about compliance; it’s about fine-tuning your tax strategy based on evolving regulations, market dynamics, and the changing landscape of your land assets. Regular assessments keep you ahead of the curve, allowing you to adapt your tax strategy for maximum efficiency.

Legal and Financial Expert Partnerships

Navigating the intricate landscape of asset protection in Malaysia requires more than a compass; it demands a seasoned guide. In this section, we delve into the invaluable advantages of forging partnerships with local legal and financial experts, unveiling how their expertise becomes a cornerstone in safeguarding your wealth.

1. In-Depth Understanding of Local Regulations

Local experts are akin to navigators who understand every nook and cranny of the terrain. When it comes to asset protection, they bring a profound understanding of Malaysian regulations, a knowledge that extends beyond what’s written in statutes. 

From zoning laws to the subtleties of land classifications, their expertise ensures that your strategies align seamlessly with the intricacies of local laws. This deep insight acts as a protective shield, guarding against potential pitfalls that might elude those less acquainted with the nuances of the Malaysian legal landscape.

2. Tailored Strategies for Unique Challenges

No two high-net-worth individuals face precisely the same challenges, especially in a dynamic environment like Malaysia. Local experts possess the ability to craft tailored asset protection strategies that consider your unique circumstances. 

Whether it’s addressing the complexities of family succession, optimizing tax structures, or navigating specific land-use restrictions, their bespoke solutions are like a well-fitted suit – designed to complement your individual needs. This tailored approach ensures that your asset protection strategy is not a generic off-the-shelf solution but a personalized, effective shield against potential risks.

3. Network and Relationship Capital

In the realm of asset protection, relationships matter. Local experts bring with them a wealth of connections and relationships within the Malaysian legal and financial community. These connections extend to government offices, regulatory bodies, and key players in the industry. 

This network capital becomes a strategic asset in times of need, facilitating smoother transactions, expediting approvals, and providing access to valuable resources. It’s not just about what they know but also about who they know, creating a synergy that fortifies your position in the intricate web of asset protection.

Fortify Your Land Assets Starts with Sim & Rahman

Safeguarding your land assets in Malaysia isn’t a theatrical endeavor; it’s a strategic one. Being well-informed and proactive is a choice rooted in practicality, ensuring your wealth journey is characterized by calculated decisions and security. The intricacies of Malaysian land law may seem daunting, but armed with knowledge, you’re poised for success.

Ready to delve deeper into the practicalities of safeguarding your land assets in Malaysia? Explore a wealth of resources, consultation services, and related articles for more. Your journey to fortify your land assets starts with practical insights and strategic steps, and we are here with you every step of the way to provide you precisely that. 

We refer to the article posted in our website dated 16 June 2023 titled ‘The tax implications of inheriting Property in Malaysia’ which was uploaded by unknown party without our consent and has been circulating. We seek clients and readers to disregard the said article which is clearly erroneous.

Sincerely,

Sim & Rahman Solicitors & Advocates

An annual general meeting (AGM for short) is a necessary kind of periodical meeting any company needs. It is necessary for the upkeep of the company and to make any needed changes. The changes made in an annual general meeting are so that the company directors can improve the company further. 

Why Annual General Meetings and not the other kinds of meetings? 

There are 4 common kinds of meetings for shareholders in Malaysia. The Annual General Meeting is just one of them. 

The other 3 kinds of meetings are extraordinary general meetings (EGMs), class meetings, and directors’ meetings. 

a. Extraordinary general meetings (EGMs) 

EGMs are a kind of meeting where it’s unlike the AGM. Sometimes, it can be referred to as a special general meeting or emergency general meeting. Such meetings are used to discuss important and urgent matters like legal issues and remove important individuals from the company. 

Members who own at least 10% of the capital’s capital share can call for an EGM. The same thing applies if 2 or more members of the company who own a total of 10% of the company can call for EGMs. 

b. Class meetings 

Class meetings are usually meetings for different classes of shares of that particular class. Only the holders of such classes can vote and attend such classes. Usually, when a company holds a class meeting, it’s to inform these shareholders that their class of shares are about to be altered, varied, or affected. 

c. Directors’ meeting 

This kind of meeting is exclusively for directors in the company. They will run and operate day-to-day affairs of the company and the directors will make all the decisions. They will not, however, make choices that are supposed to be decided by the shareholders. 

What do shareholders do in an Annual General Meeting then? 

As the name says, annual general meetings are held on a yearly basis. However, if you are a startup company, then that figure may differ. You may have a lot of meetings with fellow stakeholders every other day of the week. 

When it comes to AGMs for a startup company, it’s best that you have it within 18 months of your company’s incorporation date. After that, your AGM is best held every calendar year. It should not be held more than 15 months after your last AGM meeting though. 

Meeting notice for AGM 

Before the AGM starts, a notice of meeting document will be sent to all shareholders. In the notice of meeting document will include the following: 

• Details of the meeting
• Agendas
• Resolutions
• And many others 

Sometimes the notices for an AGM may be accompanied by circular statements outlining all the proposed business of the meeting. It should contain sufficient information to enable a prudent determination among all attending shareholders. 

The notice has to be circulated for at least 21 days before the AGM’s meeting date. If it’s an ordinary meeting then a 14 days minimum is needed. Unless the meeting is called to pass a special resolution then the notice of meeting should be circulated at least 21 days before. 

The timeframe leading up to the AGM can be modified to require a longer notice period. If a shareholder is fully aware of the AGM date and its agenda and still chooses to be absent from it, then this member cannot voice opinions and concerns when the AGM is done and over with. 

However, the courts can be reluctant to invalidate the proceedings of an AGM because of technical irregularities of the meeting’s notices. 

Voting in AGM meetings 

If the shareholder is an ordinary shareholder, then they will be entitled to 1 vote in the AGM. If it’s a preference shareholder in public companies, then they do not have voting rights. However, the preferred shareholder may enjoy more rights than an ordinary shareholder does. 

In the meetings, there are 2 types of resolutions – ordinary resolutions and special resolutions. Members who have voting rights appointed by the members can vote on both of the resolutions. More than 50% of the total votes cast is needed to pass an ordinary resolution. A special resolution will need 75% valid votes to be able to get passed. 

Appointing proxies in the company 

A company’s shareholders are allowed to appoint proxies to attend general meetings on behalf of the shareholders. This is only when the shareholders themselves are unable to attend. These proxies share the same rights as the shareholders (check Section 334(1) of the CA 2016 for further reference). 

Appointment and Removal of Directors 

Shareholders also have powers to remove a director if the said director is not performing up to standards. If it’s in a private company, they can pass an ordinary resolution before the expiration of the director’s time. 

Shareholders will have to follow the rules made under Section 206 of the CA 2016 when removing a director. A director can only be removed when a new successor has been appointed. 

There is a difference between the removal and retirement of a director, however. Under Section 205 (3) CA 2016, directors can be reappointed (which they often do), then this decision lies with the shareholders of the company. The company must vote on the same director at these AGMs. 

Q&A sessions and right to speak 

This part of the AGM is pretty straightforward. When the AGM is done, the shareholders must be given time to question the decisions made during the meeting. Shareholders can also expect directors to give full and frank disclosures of all matters to all shareholders. That way the shareholders can have a clear picture of the company’s affairs and make proper decisions at the general meetings. 

Conclusion 

AGMs are for companies to resolve, update, and improve anything that needs it on a yearly basis. If any companies need any of those, an AGM is the best time to bring it up.

It’s no secret that Malaysians do own cryptocurrencies in various figures. A lot of Malaysians have bought cryptos for many years. However, what happens when you have passed away? What will become of your cryptocurrencies then? 

It is advisable for all Malaysians to have a will first and have it updated periodically. If you don’t have a will yet, it’s good to make one and have it validated. If you already have one, make sure you review it periodically. 

Assuming that you already have an existing will, then things will be much easier for you and your relatives. If you own cryptocurrencies, you can easily just list it in your will – no problem at all.  

Listing your cryptocurrencies in your wills 

Though listing and including your cryptocurrencies in your wills is as easy as a piece of cake, then how do you go about doing it then? Here is what you should do when it comes to listing your cryptocurrencies in your wills. 

1. Mention where you have cryptocurrencies at 

There are so many cryptocurrency platforms around. You’re bound to have (in the very least) 1 account on 1 platform. Or you may have several accounts spread across several different platforms. List all of the accounts you have on every platform you are on. 

Then, list down the passwords and keys to your cryptocurrency accounts. Cryptocurrencies are not like jewelries and houses. It cannot be seen and touched. In your will, you should clearly describe your cryptocurrency and where to find it. 

2. Digital wallets 

When you have cryptocurrencies on any platform, you are bound to have an electronic wallet or a digital wallet. The digital wallet is for you to store your cryptocurrencies. Like the platforms, you should list your digital wallet down. Include the passwords and Login IDs too. 

Digital wallets are often accessible via computers or smartphones. It often requires certain devices to be able to access. Include these devices in your will so the key elements stay together until your beneficiaries are able to access them. 

3. Create passwords and PIN memos in your wills 

When you have passed away, security access to your cryptocurrencies will be an issue. It is understandable that as crypto owners, you may not feel comfortable sharing this information. However, putting them down in your will for your beneficiary will be a good idea. 

You can create a memorandum, which is a separate document from the will, and list security information in it. Then, in your will, reference this memorandum so your beneficiaries are able to access it. 

4. Make a step-by-step access guide 

Not everyone knows how to access and use a cryptocurrency platform. Some people are not very tech-savvy. In order to help any beneficiary that is not tech-savvy, you should come up with a step-by-step guide to help them access the platform. 

In the step-by-step guide, explain how to access your cryptocurrency. Include in it your passwords and PIN numbers. Though some beneficiaries are already familiar with cryptocurrencies, they may not be familiar with how to access your cryptocurrencies. 

When preparing the step-by-step guide, assume that your beneficiaries are not tech-savvy and know nothing about it. 

5. Other things to consider 

Not every beneficiary may be comfortable with cryptocurrencies. With the provided instructions, they may have a hard time navigating the process. Some people may suggest leaving the value of the investment rather than leaving them cryptocurrencies instead. 

If that’s the case, it will need the estate executor to have technical skills to exchange cryptocurrencies for traditional cash. Worst case scenario is to hire an estate administration attorney who has experience in dealing with cryptocurrencies. 

If privacy is your concern, you can also put your cryptocurrency into a trust. A trust can help keep your cryptocurrency out of probate and can help keep information about your coins. 

Conclusion 

Putting cryptocurrencies into your wills is not necessarily a complicated matter. With step-by-step planning, you can put together your cryptocurrencies and have them listed in your wills or trusts.

Contact us today if you have any queries on the above. 

• Cash flow problems – pretty much speaks for itself as there are insufficient funds to keep up the overhead
• Innovation – it wasn’t the lack of innovation thereof but rather too many innovations that don’t work or not work long-term. In essence, you can say that startups are testing grounds for new techs, products, services, and markets. Again, these areas may not work or function long-term, which spells out loss of money, time, and effort spent in the area.
• “Growth” isn’t exactly growth – This is a painful area for many business owners to come to terms with. As mentioned before, startups are testing grounds for new technologies among many other things. If it doesn’t work out, the test can be abandoned just like that. It’s growth by learning how and what works and what don’t. It’s more of an exponential growth rather than a linear growth. 

There are many reasons why a business or a start-up can fail. However, that does not mean every start-up business is subject to such problems. In this article, we will cover 9 important steps in setting up a business in Malaysia. 

9 Steps to a Successful Business Startup in Malaysia 

Find out how to start a successful business in Malaysia here. 

1. Look for help and advice from local professionals 

It’s easy and possible to do everything on your own. Perhaps you’re the type of business owner who prefers to run your company on a 1-man-show kind of structure. However, there will be applications and jobs that you simply do not have the application to do on your own. You will need to hire or approach a professional to help you out on the matter. 

Hiring a professional is definitely a beneficial thing for your company. It’s not just limited to HR, but you will find that you will need the expertise of accountants, auditors, tax agents, lawyers, property agents, etc., to help you along your business journey. It can be proven valuable and saves you a lot of time and money in the ling run. 

2. Licensing and requirements by specific industries 

In recent years Malaysia may have softened its grips on certain industries within the country. You can see foreign participation in many sectors across the country in the last 10-20years or so. It’s common to see expatriates working in oil and gas industries, wholesale and retail trade, and many more. 

As a business owner, you will need to know what kind of licenses or conditions when you wish to venture into these industries. It’s a lot of research you need to do before going into the industry. 

3. Opening a bank account just for your business 

This is a common mistake made by many business owners: not opening a business bank account for the company. Your business bank account is used for many things, of which the most common areas are: 

• Pay for insurance
• Pay employee salaries
• Company insurance
• To receive any profits or to pay clients 

Setting up a business bank account in Malaysia isn’t very hard. All you need to do is to find out and submit the relevant information and you’re good to go. 

4. Register your company as a legitimate incorporated business 

Register your company as a legitimate company in Malaysia under Companies Act 2016 (submit application here). The most common type of business registration in Malaysia is Private Limited (Sdn Bhd). You can register for your company individually or through a professional to help you. The process can take up to 3 working days, and can be longer depending on the submission volume. 

5. Secure an address and premise just for your business 

One of the important steps in setting up your business is registering a business address for your company. You can (and are allowed to) register your home address as your business address. However, we’d strongly advise against it for privacy reasons. If you have a physical address, then it would have been a better address to put instead. 

If you are not in Malaysia or from Malaysia, you can opt to subscribe for a virtual address. It works too. 

6. Immigration permits and visas 

This is an optional step only because not every businesses will hire foreigners. If you are an MNC, it’s quite likely that you will hire foreigners as one of the key persons in your company. If that’s the case, make sure that you have the right visas and permits for the foreigner you are planning to hire. 

7. Human resource and employment laws

Malaysia is home to quite a sizable educated talent pool. A lot of potential people in the talent pool are able to speak multiple languages and can work for affordable salaries. Having said all of that, you will need a human resources department or person to be able to find the best talent within this said talent pool. As soon as someone is hired, your human resource exec will have to start contributing for the employees’ statutory deductions. 

The Malaysian labor law is perceived to favor the employees more, which means as employers you are more prone to getting reported and sued for ignorance and breach of labor laws. Having a well-trained human resources exec is great for the company because this said department can advise the company what steps to take. 

8. Intellectual property searches and registrations 

Malaysia has a relatively tough legal framework and an affordable system for registration and protection for intellectual property. This framework can assist you to search and see if your business registration name is already taken or not. 

9. Taxes 

Taxes are something that you should consider when you are planning your initial startup of your company. It should not be an afterthought. The most common types of taxes Malaysian companies have to deal with are income tax, withholding tax, real property profit taxes, and stamp duty, among many others. 

Conclusion 

The bottom line is that make sure you do extra and substantial research on ways to set up a business before really setting up your business. There are a few obstacles you will have to follow, but it should not be an issue if you follow the rules.

Why Hire a Corporate Lawyer? 

When people hear of hiring a lawyer, corporate or not, they will immediately think of how expensive it can get. It may be true but not necessarily applicable in every circumstance. However, here are some common reasons why people hire a corporate lawyer: 

• Draft agreement letters, privacy policies, and other legal documentations
• To represent the business in court
• Help deal with international or local clients
• And many others 

Hiring a corporate lawyer has been proven useful especially when you have issues pertaining to your business. Having said all of that, let’s have a look at some of the times you need to have a corporate lawyer. 

When To Hire Corporate Lawyers? 

You’d be surprised at some of the instances when you need to hire a corporate lawyer. Here are some of examples. 

1. Your business is in a highly regulated industry 

When we say “highly regulated industry”, it means the industry has a lot of rules and regulations attached to and surrounding it. There will be a lot of times when you will find how you need to apply for licenses from respective government authorities. At the same time, you will also need to make sure that your business is compliant with the laws in place. 

If you do not have the proper rules and regulations in place, there’s a good chance you risk a close down without having the proper licensing. Licensing seems like it’s a lot of work for many business owners. We can understand as not every business owner has the money to hire a lawyer or find that there are sufficient clients to support their market. 

However, this should not be a major issue as Malaysian laws have innovated and improved itself to support business owners across the scales. Hiring an experienced corporate lawyer can help you pinpoint the issues and resolve it. 

2. Having multiple co-founders or shareholders 

You’d be surprised that even business partners have disagreements and conflicts on how to manage the business. It may help boost your business in the early stages, however, this is for the long-term benefit of the company. Engage a lawyer as a mediator to help you and your business partner to lay out the basic outlines of the rights and responsibilities in the company. 

Usually, when companies hire a corporate lawyer it’s for the following scenarios: 

• For the company to prepare for any potential bankruptcy in the future
• When 1 partner or stakeholder decides to leave the partnership
• Dividing the business’s profits between the owners and stakeholders

Just make sure you and your business partners are on the same page of understanding upon hiring a corporate lawyer. Misunderstanding is present in every situation, just make sure that it’s lowered to the most minimal level. 

3. You are a new company or a start-up company 

Young companies don’t really last a very long time. According to some statistics, up to 90% of startups don’t last beyond its first year. At the same time, 82% of the new companies shows that new companies shut down due to cash flow problems. The very same statistics show that only 40% of startups legitimately made profit. Malaysian startup companies are booming in 2020, however there are something for you to look out for. 

As mentioned in the previous point, your business partner may choose to leave your company after a few years. What will happen to the newly-vacated shares? Will you buy it over? Or will it be sold to someone else? 

There is also the question of how much time and effort each co-founders or owners should spend on the business. You will find that some co-founders don’t put in as much effort as the other co-founder. It’s basically like university all over again. You’ll see how you’ll be running the business as a 1-man-show instead of as a partnership as previously agreed upon. 

Sometimes, the company needs new investments. Maybe your partner likes the new investment and pushes for it. However, you don’t. How will this issue be resolved if that’s the case? 

There can be several scenarios ranging from easy to resolve to ones that are too complicated. In this case, it’s best to hire a corporate lawyer to help be your mediator. 

4. Hiring new staffs or contractors 

A lot of companies and businesses think that they don’t really need a lawyer when it comes to hiring new staff or contractors. If you think the same thing here, you’d be in for a surprise at what some staff can do to break employment laws. Generally, an average employee in Malaysia will do their work as asked. However, there will be times when you will run into that one black sheep that caused a lot of problems for you and your company. That is something a lot of companies do not like. 

For example, there are times when your employees have to handle sensitive company information (finance accounts and health records are some of the most common ones). You may have a company rule in place that your employees are not allowed to take home sensitive documents due to its sensitive nature. Some black sheep employees just won’t listen and decide to bring it home. Not only does it break protocol, there’s a possibility that P&C information may have been leaked by the same ill-disciplined employee. 

This is when you can get your lawyers in to help resolve the case. Depending on how serious the nature of the problem is, your lawyer can and will advise you accordingly. 

Conclusion 

There are so many possibilities why you need corporate lawyers. Corporate lawyers are not exactly something that business owners think they need for now. However, in the long run, it’s something that is pretty useful long term.