Malaysia: Directors beware – indemnity in a company’s constitution is not foolproof

The constitution (formerly known as articles of association) of companies in Malaysia generally contains an indemnity provision in favour of directors, indemnifying them against liabilities (for example, associated legal fees and financial costs) incurred by the directors in defending legal suits by third parties where judgement has been given in their favour in respect of … Read more

Hong Kong SFC confirms enforcement priorities and approach following strategic review

In its recently relaunched Enforcement Reporter newsletter (see first issue), the Securities and Futures Commission (SFC) has confirmed that corporate fraud and misfeasance, anti-money laundering, Growth Enterprise Market companies and multiple intra-group failings are issues high on its agenda and will be pursued as a priority, as part of its shift towards a more targeted … Read more

High Court upholds shareholders’ rights to requisition company EGM

The Hong Kong High Court has rejected an attempt by the board of a company to prevent an extraordinary general meeting requisitioned by disgruntled shareholders seeking to replace a number of board members. In China Investment Fund Company Ltd v Guang Sheng Investment Group Ltd and Ors, the High Court refused the application by China … Read more

Hong Kong court grants leave under new Companies Ordinance to bring unfair prejudice proceedings by way of derivative action

In Yu Yuchuan & Ors v China Shanshui Investment Company Limited (HCMP) 360/2015, Hong Kong’s Court of First Instance granted leave to minority shareholders of Shanshui Investment Company Limited (Shanshui) to bring unfair prejudice proceedings in the name of the company, by way of statutory derivative action pursuant to sections 732 and 733 of the … Read more