Frequently encountered issues in IPO-Part 2

IPO
IPO

Is there a valid fire certificate for every designated premises occupied by the listing group?

Pursuant to section 28(1) of the Fire Services Act 1988, every designated premises shall require a fire certificate.

Designated premises are premises with the use, size or location as set out under the Fire Services (Designated Premises) Order 1998. Not all premises require a fire certificate.

A fire certificate must be renewed annually. Failure to have a fire certificate in force in respect of any designated premises is an offence and on conviction, the owner of the premises is liable to a fine not exceeding RM50,000 or to imprisonment for a term not exceeding five years or to both.

A company which intends to undertake an IPO should ensure that there is a valid fire certificate for every designated premises occupied by the companies within the listing group to avoid delay to the IPO process.

#malaysiancorporatelawyer
#IPO
#howtoIPO

This post was first posted on Linkedin on 6 March 2021.

Linkedin Post
Earn-Out: A Postponed Dispute?

An earn-out is often the solution when a buyer and seller cannot agree on price. The seller believes the business is worth more than what the buyer is willing to pay upfront. So, the parties resolve the issue by deferring the portion of the price they cannot agree on, with …

Linkedin Post
The Disclosure Letter: Why Founders Selling Their Companies Should Not Treat It as an Afterthought

When founders sell their companies, the scope of legal work usually focuses on the share sale and purchase agreement (SPA). The disclosure letter is sometimes treated as secondary to the SPA but it should not have been the case. The disclosure letter sets out the exceptions to the sellers’ representations …

Linkedin Post
Third-Party Consents in a Share Sale: What Sellers Should Check Before Negotiating

When a company is sold, due diligence is usually conducted by the buyer, not the seller. That means the consents required from regulators, other shareholders, financiers or IP licensors to complete the sale are often only discovered when the buyer’s lawyers identify them during legal due diligence. By then, the …