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Articles contributed by Kadir, Andri & Partners
The new Equity Guidlines of the Malaysian Securities Commission (SC) came into effect on August 3 2009. As a result, the SC's prior approval under section 212 of the Capital Markets and Services Act 2007 will no longer be required for many corporate proposals, save for certain substantive corporate proposals in the main market of Bursa Malaysia Securities Berhad (the Malaysian stock exchange).
Sukuk in general market parlance refers to negotiable financial instraments that do not have elements that are prohibited in Island. Formal definitions can be found in international standards of the Accounting and Auditing Organisation for Islamic Financial Institutions (Aaoifi) as well as local regulatory guidlines such as in the case of Malaysia issued by the Securities Commission of Malaysia.
Payment defaults is contemplated by Islamic finance. All legal documentation in Islamic finance does provide for payment default. Perhaps what is not contemplated is the unintended consequences of a default in relation to the shariah contract.
The listing of special purpose acquisition companies Spacs on the main Market Bursa Malaysia Securities Berhad was introduced in May 2009 as part of a number of measures comprised in a new regulatory framework. In a joint launch of the new framework on August 3 2009, the Securities Commission and Bursa expressed the hope that the competitiveness of the Malaysian bourse as an equity-raising and listing destination will be enhanced and that the advent of Spacs, in particular, will not only promote private equity activity but also spur corporate transformation and encourage mergers and aquisitions.
In an economic downturn, many companies may find themselves in a position of not being able to pay their debts when they are due. Being in this position is precarious, as there is a risk of the company being wound up, causing hardships to employees, creditors and shareholders. In addition to that, creditors will rush to enforce the debts owing to them, which is usually a disorderly lead to the demise of the company. But there are mechanisms in place to address the inability to pay debts, depending on what the cause is.
In Asia, where innumerable companies have succesfully listed on their respective national or overseas exchanges, there has also been a growing trent to delist or go private.
After more than 50 years, steps were finally taken to arbitration in Malaysia. The introduction of the Arbitration Act 2005 was seen as a unique opportunity to address the problems that have plagued the arbitration process in Malaysia. The problem that needed to be addressed mainly revolved around delays and increasing judicial interference in the arbitration process.