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In Malaysia, including Kuala Lumpur, Class Action Lawsuits are not a commonly recognised legal concept. While they do exist, the Class Action Lawsuits are usually associated with Cases initiated under Companies Act 2016, mainly in a form of derivative actions, and not as pervasive and as well developed as in countries like the United States. Typically, in these cases, a group of individuals or entities stand together to sue a defendant(s) for collective wrongs or damages suffered. Law firms skilled in litigation procedures are essential when dealing with such cases.
Class Action lawsuits can become complex rapidly. It involves a large group of plaintiffs and extensive documentation. Legal representation is essential for the following reasons: to understand the rights and obligations of parties involved, to navigate through the complex litigation process, to skillfully draft the pleadings, to gather evidence and witnesses, to negotiate potential settlements and to represent your interests in court.
Malaysia does not have specific provisions to cater for class actions, but it does allow for derivative actions under the Companies Act 2016. A derivative action is when a member or director of the company sues a person or an entity on behalf of the company. Court approval is required before proceedings can start. Additionally, Malaysia also practices the 'loser pays' rule, where the losing party may be ordered to pay legal costs of the victorious party.
A Class Action is a type of lawsuit whereby one person or a family of persons sue on behalf of a larger group of people who are "similarly situated."
A derivative action is an action initiated by a member or director on behalf of the company, subject to court approval.
As per Malaysian law, it is usually the member or director of a company that file a class action lawsuit.
The 'loser pays' rule is when the losing party may be ordered to pay the legal costs of the winning party.
Class Actions are not common in Malaysia. Conventional forms of lawsuits are more popular and practical in most situations.
You may refer to "Companies Act 2016" and "Rules of Court 2012" for more information. The Malaysian Courts' official website also provides valuable information and insights. Law associations like the Malaysian Bar is also a good resource for finding qualified lawyers.
If you believe you have a potential Class Action case, the first step is to consult with a lawyer who specializes in Class Action or Corporate Law. They can help evaluate your case and guide you through the process. It's crucial to understand that litigation is time-consuming and potentially expensive, so ensure you have all necessary resources before proceeding.
