Frequently Asked Questions

Situation such as disposing and acquiring a business or shareholding interest or transferring all or most of a legal entity’s assets or shareholding interest can be a somewhat complex transaction involving scores of necessary agreements and other documents as well as due diligence in order to ensure a sale or transfer is done correctly. Business owners can leave themselves open to liability issues that could result in disputes and costly litigation if handled incorrectly.

In Malaysia, most of the purchasers for real estate transactions will opt to apply for a loan facility to finance their purchase of real estate property of which the loan facility in general can be categorised into two different groups – conventional and Islamic lending.

In a conventional lending, the loan amount is repaid together with interest over an agreed period by the borrowers and more often than not is secured by the property so purchased.

While Islamic lending on surface seems to share the same nature and characteristics as conventional lending, they are in fact based on different concepts and principles. Two fundamental principles of Islamic lending include the lenders are prohibited from collecting payment of interest from the borrower and the concept of sharing of profit and loss which essentially means a borrower is required to give the financial institution providing Islamic lending a share in their profits rather than paying interest.

By having a statutory power of attorney, the donee is being granted with the power to enter into numerous personal and business transactions on the donor behalf in a specific circumstance as may be determined by the donor. Think of the statutory power of attorney in this way: if the donor could enter into a contract, open an account, or sell his or her property, so can the donee that being granted with a statutory power of attorney.

They are legal documentation necessary to close a particular deal, including, but not limited to:

(a)   Call Option Agreement;

(b)  Deed of Acknowledgement of Debt;

(c)   Deed of Assignment;

(d)  Deed of Novation;

(e)   Heads of Agreement;

(f)   Investment Agreement;

(g)  Joint Venture Agreement;

(h)   Management Services Agreement;

(i)   Master Agreement;

(j)   Memorandum of Understanding;

(k)   Moneylending Agreement;

(l)   Power of Attorney;

(m)  Performance Guarantee Agreement;

(n)   Profit Sharing Agreement;

(o)  Promissory Notes;

(p)  Put Option Agreement;

(q)  Settlement Agreement;

(r)   Sales of Business Agreement;

(s)  Shares Sale Agreement; and

(r)   Trust Deed.