CORPORATE &

BUSINESS LAW
Essential Elements of the Malaysian Legal
System
Session 1
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LAW

Defined as

A body of RULES

Which are ENFORCED

BY the STATE
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Law

Public Law Private Law

International Law
(individuals & the (individuals inter se)
(Law that prevails
State)
between States)

Public International Private International

Law Law

Constitutional Law Criminal Law

(Rights of individuals in (Offences against the
the State) State. Obligations
imposed on individuals)

Contract (Rights Tort (Offences Trust (Relationship

and obligations against between trustee and
that arise by individuals) beneficiary)
agreement)
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International Law
 Public international law
Law that prevails between States
Example: -
Climate Change – UNFCCC & Kyoto Protocol
Transboundary movement of toxic wastes – Basel
Convention
Antarctic Region – Antarctica Treaty
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International Law
Private international law
“Conflict of laws” – every country there will
be a different version of laws
It consists of the rules that guide a judge
when the laws of more then one country
affect a case
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Criminal & Civil Law

• Legal rules are generally divided into 2 categories:
• Criminal law
• Civil law
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Criminal Law Civil Law

Concerns Offences against the Disputes between

state private individuals

Purpose of the action To preserve order in the To remedy the wrong

community by punishing which has been
offenders & deterring suffered
others

The parties A prosecutor A plaintiff / claimant

prosecutes a defendant sues a defendant

If appeal ** Appellant v respondent Appellant v respondent

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Criminal Law Civil Law

Standard of proof The prosecutor must prove The plaintiff must establish
his case beyond a his case on the balance of
reasonable doubt probabilities

Decision A defendant may be A defendant may be found

convicted if he is guilty & liable or not liable
acquitted if he is innocent

Court Begins in the Magistrates’ Depends on the legal suit

Court

Sanctions Imprisonment, fine Damages, injunction,

specific performance ,
rescission

Examples Murder, theft, drunken Contract, tort, trusts,

driving, applying a false property law
trade description to goods
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The Federal Court

Court of Appeal The Superior Courts

The High Court

The Sessions Court

The Subordinate Courts

Magistrates’ Court
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Superior courts

The Federal Court

The Court of Appeal

Two High Courts - the High

Court of Malaya and the High
Court of Sabah and Sarawak
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The Federal Court

Highest court in
Malaysia.

Heard by 3 judges or
such greater uneven
number of judges as
the Chief Justice may
determine.
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Jurisdiction of the Federal Court

Exclusive Original
Appeals
Jurisdiction

Both civil and criminal from the Court of Disputes on any matter between any State and
Appeal the Federal Government

Pronounce on the validity of any Federal or

State legislation

Determine constitutional questions which have

arisen in the proceedings of the High Court but
referred to the Federal Court for a decision

To give its opinion on any question referred to it

by the Yang di-Pertuan Agong concerning the
effect of any provision of the Constitution
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The Court of Appeal

2nd highest court

Head is called the

President

Heard by 3 judges or
such greater odd
number of judges
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Jurisdiction of the
Court of Appeal Any criminal appeals from the
High Court

Civil appeals where the

amount of the subject matter of
the claim is at least
RM250,000
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The High Court

3rd highest court

Consists of two Chief

Judges

One for Peninsular

Malaysia and the other
for Sabah and
Sarawak
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Jurisdiction of the High Court

• In exercising its original jurisdiction, it has unlimited
criminal and civil powers: -
• The High Court can try all civil proceedings
• In criminal cases, death sentence offences are tried in the High
Court.
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Jurisdiction of the High Court

• It hears civil and criminal appeals from the Magistrates’
and Sessions Courts.
• It is conferred with general supervisory and revisionary
jurisdiction over all subordinate courts.
• It may issue appropriate directions to lower courts.
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Subordinate Courts

Sessions
Courts

Magistrates’
Courts

The Native
Court
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The Sessions Courts

The
highest of
the
subordinat
e or
inferior
courts
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Jurisdiction of the Sessions Courts

• Its criminal jurisdiction extends to all offences other than
offences punishable with death.
• In civil matters, it can try all actions and suits of a civil
nature where the amount in dispute or value of the subject
matter does not exceed RM1 million.
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Jurisdiction of the Sessions Courts

• Has jurisdiction:
• For the specific performance or rescission of contracts
• For the cancellation or rectification of instruments.
• It can also grant an injunction and make a declaration,
whether or not any other relief, redress or remedy is or
could be claimed.
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Magistrates’ Court

First Class
Magistrate

Second
Class
Magistrate

Jurisdiction of the 1st Class Magistrate
Civil cases
Can try all civil suits where
the amount in dispute does
not exceed RM100,000
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Criminal cases
Can try all criminal offences where
maximum term of punishment
provided by law does not exceed 10
years’ imprisonment or punishable
with only a fine
If found guilty, the magistrate may
pass any sentence allowed by law
not exceeding:
• 5 years’ imprisonment.
• A fine of RM10,000.
• Whipping of up to twelve strokes.
• A combination of any of the
abovementioned

Jurisdiction of the 2nd Class Magistrate
Civil cases
Can try all suits where the
plaintiff seeks to recover a
debt or liquidated demand
in money payable by the
defendant not exceeding
RM10,000
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Criminal cases
Can try offences for which the
maximum term of imprisonment
provided by law does not exceed 12
months’ imprisonment or offences
punishable with only a fine
A Second Class Magistrate may
pass any sentence allowed by law:
• Not exceeding 6 months’
imprisonment;
• A fine of not more than RM1,000;
or
• Any sentence combining either of
the abovementioned
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The Small Claims Procedure

of the Magistrates’ Court

Set up to decide on claims for recovery

of debts or liquidated demands in money
not exceeding RM5000 at the date of
filing

Cheap and no legal representation is

allowed for individuals
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The Court for Children

• The Court for Children was set up to deal with criminal
offenders below 18 years of age.
• It consists of a First Class Magistrate who is assisted by 2
lay advisers, 1 of whom shall be a woman.
• The function of the advisor is to inform and advise the court with
respect to any consideration affecting the punishment or other
treatment of any child brought before it.
• This court has jurisdiction to try all offences except those
punishable by death.
• If the offender can appeal to the High Court against the
finding.
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The Native Court

• The Native Court is peculiar to Sabah and Sarawak.
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Jurisdiction of the Native Court

• It can hear and determine matters affecting
“native customs” where the parties are natives: -
• Breach of native law or custom such as religious or
matrimonial matters.
• Cases involving land where there is no title issued by
the Land Office in which all the parties are subject to the
same native system of personal law.
• Civil cases (excluding land) where the value of the
subject matter does not exceed RM50 and all parties
are subject to the same native system of personal law.
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Q&A