Banks In The Spotlight

A recent decision of the Federal Court governing the relationship between lender and borrower concerning terms in security documentation caused a stir in the industry.  Does this merit a closer look into standard banking documentation? How does this affect recovery?

Other cases of note have raised practical considerations for banks as lenders and creditors with the coming into effect of the provisions under the Companies Act 2016 and the Insolvency Act 1967 relating to corporate rescue and the protection of individuals who stand as guarantors respectively. Are these inroads possibly being exploited by debtors? Are the provisions of the Insolvency Act 1967 too guarantor-friendly? Alternatively, do these new mechanisms boost the financial services offered by Malaysian banks?

The firm organised a seminar on 25th April 2019 at the RDL office in Kuala Lumpur to discuss these issues.  Besides our Partners, Ng Sai Yeang and Mark La Brooy, our guest speaker was Choong Shaw Mei, formerly a practising advocate and solicitor and also an in-house legal adviser with an established bank in Malaysia, and a present-day academician at the University of Malaya.