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Editor’s Note

Dear Readers,

As our nation celebrates the 66th year of independence, the August edition of Empower is imbued with the essence of liberty, advancement, and legal acumen. Merdeka, a term intricately woven with connotations of freedom and unity, strikes a chord within our legal community. We remain steadfast in our commitment to upholding justice, championing equity, and equipping our clients with the power of knowledge.

This issue, as we commemorate Merdeka 2023 under the theme “Malaysia Madani: Tekad Perpaduan, Penuhi Harapan,” we delve into a panorama of legal intricacies that profoundly impact both businesses and individuals.

Within the Tax section, navigate to page 3 to unravel the intricate layers surrounding the nullification of the Labuan Substances Requirements Regulations in the eyes of the law. Our Tax Partner’s meticulous analysis casts light on the implications and potential recourse for Labuan entities which “failed” to comply with the now invalid regulations.


In the Real Estate article titled “Is Easement an Encumbrance?” on page 5, we scrutinize the interplay between these two legal concepts. Easements, often pivotal for property rights and land use, come under our legal microscope. With an in-depth exploration of precedents and principles, we shed light on whether easements can be rightfully considered as encumbrances.


Corporate & Commercial affairs claim the spotlight on page 7, where we explore the intricate facets of Deadlock Provisions within Shareholders’ Agreements. Grasping the contexts and choices presented in such scenarios is pivotal for effective corporate governance.

Turning to our Employment section on page 9, we present valuable insights into navigating Performance Improvement Plans. Drawing inspiration from the Cliford Lawrence Patrick case, our comprehensive analysis seeks to aid employers and employees in addressing these intricate circumstances.

Continuing to the Dispute Resolution segment on page 11, we address an issue of pressing concern. The article underscores the ramifications of presenting a winding-up petition for ulterior motives, underscoring the paramount importance of upholding the sanctity of the court process.

Lastly, our Inside Out segment, spanning pages 13 to 15, unveils a panorama of our firm’s activities. It is a living testament to our commitment to not only excel in legal matters but also to actively engage in pursuits that contribute positively to the legal community and society at large, echoing the values of Malaysia Madani.

As we commemorate Merdeka 2023 under the resounding theme of “Malaysia Madani: Tekad Perpaduan, Penuhi Harapan,” let us celebrate the liberation that knowledge and comprehension of the law bestow. May this edition of Empower radiate as a beacon of legal enlightenment and empowerment.

Here’s to a meaningful Merdeka and an enlightening read.

We hope you will gain valuable insight by reading this month’s issue, and we welcome your questions and suggestions for future editions at newsletter@hhq.com.my. As always, enjoy your read and have a great month ahead!

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