Circulars

Corporate and Conveyancing Practice – List of Issues

Dear Members of the KL Bar,

The Corporate and Conveyancing Practice Committee (“CCPC”) is gathering issues faced by members in dealing with the respective government departments.

The purpose is to address any pertinent issues and also to find a way to ease any regulatory requirements so that conveyancing practice is made easier. The issues gathered by the CCPC thus far are as follows:-

1. Land office/ registry matters

  1. Many registrations at the land office concerning properties with strata titles are being rejected for the reason that there are outstanding quit rent payments on the master title notwithstanding that the owner of the unit concerned has paid his/her share. This issue is prevalent in abandoned housing projects where the Developer has been wound-up and Joint Management Body/Management Corporation has not been set up.
  2. Land office/Registry imposes limitation on how many properties can be listed in the Instrument of Transfer (Form 14A) to be presented.
  3. Lengthy process on the application for consent to transfer/charge.
2. Stamp duty issues
  1. Bank draft/lawyer’s cheque for payment of stamp duty must be presented to the stamp duty office counter within 3 days from the date of issuance, failing which a fresh bank draft/cheque has to be issued.
  2. One bank draft can only be used for payment of stamp duty for one property.
  3. There is a limitation of how many payments for stamp duty can be made per day.
  4. For stamp duty, only those who are registered with LHDN can make payment. This is undue burden on the lawyers as no payment can be made if the registered person(s) is unavailable.
3. Companies Commission of Malaysia (“CCM”) issues

Under the Companies Act 1965, any Order granted by Court must be lodged with CCM within 14 days after the date of pronouncement. It is common for the sealed Order to be extracted after 14 days and usually draft Order is filed while waiting for the sealed copy. CCM rejects filing of draft Order and this entails in a RM200 penalty being imposed. CCPC plans to get CCM to accept draft Order first while waiting for the sealed copy without imposing such penalty.

Should you have any other issues than those listed above, kindly forward them to yati@klbar.org.my no later than 22 May 2015.

 

Jacky Loi Yap Loong
Chairperson
Corporate and Conveyancing Committee