# Dispute Resolution Lawyers in Malaysia

> Commercial dispute lawyers in Malaysia: shareholders disputes, oppression petitions, breach of directors duties and employment claims. Settlement-first approach.

Canonical URL: https://www.cecolaw.com/dispute-resolution-lawyer-malaysia/
Author: Ching, Elaine & Co — Advocates & Solicitors, Malaysia

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Ching, Elaine & Co advises on commercial disputes arising out of the corporate relationships we spend most of our time building — disagreements between shareholders, claims for breach of directors’ duties, employment disputes and contractual claims. We act for companies, boards and shareholders in Malaysia from our offices in Petaling Jaya and Setia Alam.

## We litigate. We would rather settle.

We are able to conduct litigation for our clients, and we do. But we believe in encouraging settlement between the parties wherever it can be achieved, and we say so at the outset rather than after the costs have mounted.

The reason is commercial, not sentimental. In a shareholders’ dispute the parties usually still own something together, and often still need to. Litigation is slow, public, and consumes the management time of the very business in dispute. A negotiated exit, a buy-out at an agreed valuation, or a restructured shareholding will frequently leave both sides better off than a judgment obtained three years later. Our advice will tell you where your case is strong, where it is weak, and what the realistic commercial outcome looks like — not simply what can be pleaded.

Where settlement is not available, or where a counterparty will only move once proceedings are on foot, we litigate.

## What we advise on

### Shareholders’ disputes

Oppression petitions under section 346 of the Companies Act 2016, deadlock between equal shareholders, disputes over share valuation and buy-outs, enforcement of shareholders agreements and pre-emption provisions, derivative actions, and winding up on the just and equitable ground.

### Breach of directors’ duties

Claims concerning the statutory and fiduciary duties of directors: acting in the best interests of the company, conflicts of interest and related party transactions, misuse of company property or information, and directors’ conduct in the period before insolvency. We advise both companies bringing claims and directors defending them.

### Employment disputes

Dismissal and constructive dismissal claims, representation before the Industrial Court, and disputes over restrictive covenants, confidentiality and the departure of senior employees.

### Contractual and commercial claims

Disputes arising from sale and purchase agreements, joint venture and shareholders agreements, supply and distribution arrangements, and post-completion disputes in corporate transactions, including warranty and indemnity claims.

### Insolvency-related proceedings

Winding-up petitions and their defence, and applications arising in the course of a restructuring — work that sits alongside our [restructuring and insolvency practice](https://www.cecolaw.com/restructuring-insolvency-lawyer-malaysia/). Our notes on [undue preference](https://www.cecolaw.com/the-law-of-undue-preference-in-malaysia/) and on [share transfers and winding-up petitions](https://www.cecolaw.com/share-transfer-void-winding-up-malaysia/) deal with two issues that arise regularly.

## Common questions

### What can a minority shareholder do if they are being squeezed out?

Section 346 of the Companies Act 2016 allows a member to petition the court where the affairs of the company are being conducted, or the powers of the directors exercised, in a manner oppressive to a member or in disregard of their interests. The court has wide remedial powers, including ordering a buy-out of the petitioner’s shares. Whether that is the right route depends on what the shareholders agreement and constitution already provide.

### How long does a commercial dispute take in Malaysia?

A contested civil claim in the High Court commonly takes a year or more to trial, and longer with appeals. That timeline is itself a reason to test settlement seriously at the outset, particularly where the parties remain in a continuing commercial relationship.

### Can a dispute be resolved without going to court?

Frequently, yes — through negotiation, a mediated settlement, or a mechanism the parties agreed in advance. Well-drafted shareholders and commercial agreements often contain valuation, buy-out or escalation provisions that resolve the matter without proceedings, which is one reason those provisions repay attention when the agreement is being drafted.

### Do you act for directors personally?

Yes, subject to conflicts. Where a company and its directors have divergent interests — which is common in claims for breach of duty — separate representation is usually necessary, and we will say so early.

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This commentary is general in nature and is not legal advice.
Ching, Elaine & Co, a boutique corporate law firm in Malaysia — https://www.cecolaw.com/ · info@cecolaw.com · +60 3-7664 2141
