Legal Updates

Legal Updates for Nov - 2018

Recent Legal Developments in Vietnam

This update sets out the recent legal developments in Vietnam on sales of goods and provision of services, and confidentiality of customer information.

30 Nov 2018 | Vietnam

Proposed Amendments to the Voluntary Delisting Regime
On 9 November 2018, Singapore Exchange Regulation ("SGX RegCo") issued a consultation paper on proposed amendments to the voluntary delisting regime. The proposed amendments are aimed at aligning the interests of the offeror and shareholders, in particular minority shareholders, as much as possible, and relate to the exit offer and the shareholder approval thresholds for the voluntary delisting resolution. Interested parties are invited to provide feedback on the proposals by 7 December 2018.
27 Nov 2018 | Singapore

Directors and the Scope of Fiduciary Duties
The case of Winsta Holdings Pte Ltd and another v Sim Poh Ping and others [2018] SGHC 239 involved a family-owned and run business, a substantial stake of which was subsequently bought over by an investor. The family members stayed on to manage the business as directors and senior management, but were later alleged by the investors to have breached their fiduciary duties by diverting business from the company and failing to declare conflicts of interest. The Singapore High Court found that the Defendants had in fact breached their fiduciary duties, and were liable to compensate the group of companies for the losses suffered as a result of the breaches. The Plaintiffs were successfully represented by Lee Eng Beng S.C., Mark Cheng, Chew Xiang and Ho Zi Wei of Rajah & Tann Singapore LLP.
26 Nov 2018 | Singapore

Key Changes in the Proposed Amendments to China Maritime Code
The Ministry of Transport of the People’s Republic of China has recently issued a public consultation paper on the draft proposed amendments to the China Maritime Code (“CMC”). The current CMC was implemented in China 25 years ago. Due to developments in trade and the shipping industry, as well as other areas of law, there is a need to update the current maritime legal system to keep up with these developments. This Update will outline a few proposed amendments which are significant from the perspective of a foreign shipowner. The public consultation for the proposed amendments to the CMC is open until 7 December 2018.
23 Nov 2018 | Singapore

Transactions in Breach of the Financial Assistance Regime
International Healthway Corp Ltd v The Enterprise Fund III Ltd and others [2018] SGHC 246 is the first Singapore reported decision on the application of the relevant provisions under the Companies Act to void or avoid transactions where a company has purported to directly or indirectly purchase its own shares. The High Court had to undertake a detailed analysis of the transaction in question and to consider the interplay between statutory provisions impugning its validity and preserving the integrity of the scripless trading system. The Plaintiff company was successfully represented by Lee Eng Beng S.C., Jansen Chow, Lee Hui Yi and Danitza Hon of Rajah & Tann Singapore LLP in its claim to set aside the validity of the offending transaction.
22 Nov 2018 | Singapore

RCEP - The Next ASEAN Focused Regional Economic Agreement

The Regional Comprehensive Economic Partnership (“RCEP”), a regional trade agreement currently being negotiated between the ASEAN countries and China, Australia, India, Japan, New Zealand and South Korea, has the potential to become the next mega-economic agreement after the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (“CPTPP”) to facilitate the expansion of investment and trade in the Asia Pacific region. Given the current global trade environment, rising protectionist sentiments, and the expected increase in US trade sanctions against China, having a modern, comprehensive and mutually beneficial economic partnership like RCEP could be favourable for investors and consumers. This update examines what RCEP holds for Malaysia and what we might expect next.

21 Nov 2018 | Malaysia

Securities and Futures Act Amendments – Classification of Accredited Investors and the Opt-In Regime
The Securities and Futures (Amendment) Act 2017 introduced a spate of significant changes to the securities and derivatives industry. Of these amendments, one of the key changes that has taken effect is the revised eligibility requirements of Accredited Investors (“AI”). The new AI regime also introduces an opt-in mechanism (which comes into operation on 8 January 2019) through which eligible AIs can choose whether to be treated as a retail investor. In this Client Update, we look at the changes that have been implemented on the AI eligibility criteria, the key features of the opt-in/opt-out mechanism, and the various deadlines for compliance.
20 Nov 2018 | Singapore

Proposed New Regulation On Classification And Licensing Of Hospitals May Affect Foreign Direct Investment In Hospital Business

Foreign direct investment (“FDI”) in hospital business in Indonesia is currently regulated by the Presidential Regulation No. 44 of 2016 on Lists of Business Fields that are Closed to and Business Fields that are Open with Conditions to Investment (the "Negative List") and Ministry of Health ("MOH") Regulation No. 56 of 2014 on Classification and Licensing of Hospitals ("Regulation 56/2014"). The Negative List allows up to 67% foreign investment in a hospital (or 70% if the investor is domiciled in ASEAN countries) and foreign investment must also comply with the procedure under Regulation 56/2014 to establish, manage and classify a hospital.

According to an official of MOH, the Government is now planning to revise Regulation 56/2014 in order to increase foreign investment into classes A and B hospital, as the number of classes A and B hospitals is currently lower than classes C and D hospitals.

 The proposed revision will not only affect the new licensing regime under the Online Single Submission (“OSS”) system, but also establish a stricter limitation for FDI in hospital business. Under the proposed revision, FDI may only be made in general and specialized hospitals under classes A and B that operate a minimum of 200 beds. This is different from the current limitation of FDI under the Negative List, which only limits the amount of investment to 67% (or 70% if the investor is domiciled in ASEAN countries) but does not limit the classes of hospital where such investment can be made.

15 Nov 2018 | Indonesia

Singapore Infrastructure Dispute-Management Protocol – A New Innovation in Project Management
On 23 October 2018, the Ministry of Law launched the new Singapore Infrastructure Dispute-Management Protocol ("SIDP"). The SIDP is a framework for the management of differences and disputes, which parties to a construction or infrastructure project may choose to adopt. In this Update, we look at the key features of the SIDP and its potential practical implications.
09 Nov 2018 | Singapore

Amendments to Occupational Risk Benefits

On 18 October 2018, the Ministry of Labour and Vocational Training (“MLVT”) issued Prakas No. 480 MLVT/P.NSSF to amend Articles 6, 11 and 13 of Prakas No. 109 dated 16 June 2008 on occupational risk benefits (“Prakas”) in order to clarify and adjust certain aspects of health benefits provided under Prakas No. 109. The Prakas amends three articles.

07 Nov 2018 | Cambodia

Minimum Wage Determination for 2019 for Workers in Textile, Garment and Footwear Industries

On 5 October 2018, the Prakas on minimum wage determination for workers in textile, garment and footwear industries for 2019 (“Prakas”) was issued by the Ministry of Labour and Vocational Training. Under the Prakas, starting from 1 January 2019, the minimum wage for workers in the textile, garment and footwear industries will be US$182 per month.

07 Nov 2018 | Cambodia