The Law in a Post-Colonial State: The Shareholders' Oppression Remedy in Malaysia

Global Jurist Frontiers, Vol. 8, No. 1, pp. 1-21, 2008

23 Pages Posted: 27 Aug 2009 Last revised: 14 Apr 2015

See all articles by Mohammad Rizal Salim

Mohammad Rizal Salim

Nottingham University Business School, Malaysia Campus

Philip Lawton

Lancaster University - Law School

Date Written: 2007

Abstract

Once colonised by the British, Malaysia inherited the British political and legal system, as well as written and judge-made laws. We trace the development of the law on the shareholders’ oppression remedy in Malaysia, and compare it with the development in England. We found that the influence of English case laws is still very pervasive in the courtroom. The reasons for this includes, among others, the use of a company law statute based on the British statute, the reliance of English case laws and other legal materials, the legal training of members in the legal profession, as well as the use of the English legal tradition and the English language in the Malaysian courtroom. We conclude that despite a similarity in the written law, the sharing of a common legal heritage and a propensity by Malaysian lawyers and judges to use English laws, the laws as applied by the courts in Malaysia is not identical to the law in England. There was a desire to keep up with English developments, but in the whole the Malaysian courts have not been able to keep pace. In the courtroom, the lack of resources and expertise are probably the main factors contributing to the underdevelopment of the law. The propensity to rely on the reforms in other countries with little emphasis to the peculiarity in the local environment has undermined law reform. We argue that an effective law-making process and legal institutions are as important as the law itself.

Keywords: corporate governance, oppression remedy, unfair prejudice, Malaysia

JEL Classification: K00, K20, K40

Suggested Citation

Salim, Mohammad Rizal and Lawton, Philip, The Law in a Post-Colonial State: The Shareholders' Oppression Remedy in Malaysia (2007). Global Jurist Frontiers, Vol. 8, No. 1, pp. 1-21, 2008, Available at SSRN: https://ssrn.com/abstract=1462865

Mohammad Rizal Salim (Contact Author)

Nottingham University Business School, Malaysia Campus ( email )

Nottingham University Business School
Jalan Broga
43500 Semenyih, Selangor 43500
Malaysia

HOME PAGE: http://www.nottingham.edu.my

Philip Lawton

Lancaster University - Law School ( email )

Law School
Lancaster LA1 4YF, LA1 4YN
United Kingdom
01524 592457 (Phone)

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