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CLJ Logo CLJ Bulletin, Issue 2014, Vol 23
06 June 2014

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New This Week

1. Cases(s) Of The Week

a) MAT SHUHAIMI SHAFIEI v. PP

c) TENAGA NASIONAL BHD lwn. P & K BUILDERS SDN BHD [2014] 1 SMC 133

2. Latest Cases

a) Legal Network Series

b) CLJ 2014 Volume 5 (Part 1)

3. Articles

a) Legal Network Series Article(s)

4. Legislation Highlights

a) Principal Acts

b) Amending Acts

c) PU(A)

d) PU(B)


CASES(S) OF THE WEEK

MAT SHUHAIMI SHAFIEI v. PP
COURT OF APPEAL, PUTRAJAYA
ABDUL MALIK ISHAK JCA, AZAHAR MOHAMED JCA, MOHD ZAWAWI SALLEH JCA
[CRIMINAL APPEAL NO: B-09-212-09-2011]
26 DECEMBER 2013

CONSTITUTIONAL LAW: Legislation - Validity of impugned legislation - Presumption in favour of constitutionality - Whether presumption applied - Whether Attorney General had adopted selective prosecution in deciding to prosecute appellant - Whether s. 4(1)(c) of Sedition Act 1948 restricted person's right to freedom of speech and expression - Whether s. 4(1)(c) inconsistent with art. 10 of Federal Constitution - Whether reasonableness test offended - Whether s. 4(1)(c) violated equality provision in art. 8(1) of Federal Constitution - Whether offended proportionality test

TENAGA NASIONAL BHD lwn. P & K BUILDERS SDN BHD [2014] 1 SMC 133
MAHKAMAH MAJISTRET, KUANTAN
MUHAMMAD NOOR FIRDAUS ROSLI MJ
[GUAMAN SIVIL NO: A72-734-05-2013]
27 DISEMBER 2013

KETERANGAN: Dengar cakap - Kenyataan oleh seseorang yang tidak dipanggil sebagai saksi - Tuntutan kecuaian - Kerosakan pada kabel plaintif - Alegasi bahawa jengkaut defendan menyebabkan kerosakan pada kabel - Kenyataan daripada pekerja defendan - Sama ada pekerja tersebut dipanggil sebagai saksi - Sama ada plaintif ingin membuktikan kebenaran kata-kata yang didengar daripada pekerja tersebut

KETERANGAN: Beban pembuktian - Kecuaian - Kerosakan pada kabel plaintif - Alegasi bahawa jengkaut defendan yang digunakan menyebabkan kerosakan pada kabel - Kenyataan daripada pekerja defendan - Sama ada plaintif melepaskan bebannya untuk membuktikan siapakah individu yang memperkenalkan dirinya sebagai pekerja defendan - Sama ada terdapat kelompangan dalam kes plaintif - Akta Keterangan 1950, s. 103

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LATEST CASES

Legal Network Series

[2013] 1 LNS 108 ASSOCIATED PAN MALAYSIA v. PENGARAH UKUR DAN PEMETAAN SELANGOR; WESTWOOD DEVELOPMENT SDN BHD (PROPOSED INTERVENER) & ANOTHER CASE CIVIL PROCEDURE: Intervention - Application for - To intervene in judicial review proceedings against Respondent 1 and 2 - Any person who desires to be heard in opposition to the application - Whether proposed intervener showed it desired to be heard in said proceeding - Any person who appeared to the Judge to be a proper person to be heard by the Court - Whether proposed intervener had direct interest over the matter - Whether 'may be heard' in O. 53 r. 8 of the Rules of the High Court 1980 conferred a discretionary power on the Judge in deciding whether to allow application - Whether Court must look at whole facts and circumstances to determine if it should allow application to intervene in addition to issue on direct interest - Whether judicial review proceeding was proper forum to address dispute regarding survey plans - Whether related to core issue whether decision by respondents was administratively sound and lawfully made - Whether dispute should be determined at a proper trial - Whether applications should be dismissed
[2013] 1 LNS 128 BULVINDER SINGH ARJAN SINGH & SATU LAGI lwn. HANIM MANSOR LABELAK & SATU LAGI GANTI RUGI: Kemalangan maut - Liabiliti - Kemalangan maut di lorong kecemasan - Sama ada simati mempunyai alasan yang sah untuk menunggang dilorong kecemasan - Sama ada kemalangan berpunca daripada tindakan responden memberhentikan kereta di lorong kecemasan atau daripada tindakan si mati menunggang motosikal secara laju
GANTI RUGI: Kemalangan maut - Tuntutan gantirugi - Kehilangan tanggungan - Sama ada ibupaba simati berhak menuntut ganti rugi kehilangan tanggungan - Sama ada ibubapa simati dapat membuktikan sumber pendapatan simati sebenar bagi tujuan tuntutan ganti rugi kehilangan tanggungan
LALULINTAS JALAN: Kecuaian - Penemuan kecuaian - Penggunaan lorong kecemasan - Kewujudan keadaan kecemasan - Sama ada tindakan membetulkan tali ikatan kerusi bayi adalah suatu kecemasan yang mewajarkan responden memasuki dan memberhentikan keretanya di lorong kecemasan - Sama ada responden mempunyai alasan yang sah untuk menggunakan lorong kecemasan berbanding dengan simati
[2013] 1 LNS 161 NEW HOONG FATT AUTO SUPPLIES SDN BHD & ANOR v. EAGLE EYES AUTO LAMPS CENTRE SDN BHD & ANOTHER APPEAL CIVIL PROCEDURE: Costs - Appeal - Against decision of Senior Assistant Registrar in awarding RM70,000.00 as getting up fee - Whether trial involved different issues of law and fact in respect of the two suits - Whether issues that required determination were complex - Whether issues raised were also novel when considered within the context of the automotive replacement parts and automotive replacement accessories industry - Whether specialised knowledge and experience of intellectual property law was required - Whether subject matter in both suits was of significant importance to both plaintiffs and defendant - Whether outcome of suit would have had a huge bearing on the automotive replacement accessories market
[2013] 1 LNS 185 VELL PAARI SAMY VELLU v. DATO' PARDIP KUMAR KUKREJA & ANOR CIVIL PROCEDURE: Locus standi - Want of authority - Plaintiff did not hold any Letters of Administration in respect of deceased's estate - Plaintiff moving the court in her capacity as a 'beneficiary' to deceased's estate - Whether Syariah Court Order and Small Estates Distribution Order vested plaintiff with power to institute proceedings on behalf of and/or for benefit of deceased's estate - Whether plaintiff should and could have obtained a Small Estates Administration Order under s. 13 of the Small Estate Distribution Act 1955 - Whether plaintiff demonstrated she had sufficient locus standi to pursue case for estate of deceased
CIVIL PROCEDURE: Jurisdiction - High Court - Defendants' registration as co-proprietors of land pursuant to an Order of Court dated 02.08.2006 in Saman Pemula No. 24-1652-2005 - Had plaintiff brought action properly in capacity as Administrator to deceased's estate, whether the High Court could review Order of a concurrent High Court - Whether High Court had jurisdiction to determine and declare whether doctrine of survivorship under a joint-tenancy situation could apply to Muslim estates
[2013] 1 LNS 190 ROBERT LEFORT & ANOR v. GILL & TANG CONTRACT: Sale and purchase of shares - Terms - Governing law - No express choice of law clause - Whether implied choice of system of law by reference to which contract was made to be inferred from terms of the contract or surrounding circumstances was US laws - Whether system of law which the transaction had the closest and most real connection was US laws
EVIDENCE: Witness - Expert witness - Witness herself admitted she was not an expert - Whether a liberal interpretation should be given to s. 45 of the Evidence Act 1950 - Whether it was for the Court to determine on the witness' testimony whether she was indeed an expert within meaning of s. 45 of the Evidence Act - Whether so-called concession by witness that she was not an expert in cross-examination had to be viewed in the whole context - Witness gave her opinion based on sound grounds and supported by basic facts which were unchallenged - Whether opinion and views of witness were relevant facts and admissible
INSURANCE: Construction of policy - Indemnity - Scope of insurance policy - Whether services rendered fell within ambit of Malaysian legal practice as transaction involved US laws - Whether 1st defendant was acting within his capacity as an Advocate and Solicitor of Malaya - Whether 1st defendant was acting within ambit of Professional Indemnity Insurance policy - Whether 2nd and 3rd defendants liable to indemnify 1st defendant as the Court had found 1st defendant liable to plaintiffs
TORT: Negligence - Professional negligence - Whether 1st defendant was in breach of its duty to exercise all due professional care, skill, negligence in carrying out plaintiffs' instructions for the sale of the Shares - Whether plaintiffs had proven their claim of negligence against 1st defendant - Whether there was a breach of duty of care - Whether 1st defendant's conduct was in breach of the standard of skill and care expected of a legal practitioner

CLJ 2014 Volume 5 (Part 1)

COURT

COURT OF APPEAL

Abdul Aziz Ismail v. PP
(Mohamed Apandi Ali, Linton Albert, Hamid Sultan Abu Backer JJCA)
(Criminal Procedure; Criminal Law - Dangerous Drugs Act 1952 - Section 39B(1)(a) - Trafficking) [2014] 5 CLJ 1 [CA]

Malaysia Airline System Bhd v. Wan Sa'adi Wan Mustafa
Clement Skinner, Zaharah Ibrahim, Mah Weng Kwai JJCA
(Administrative Law; Labour Law - Employment - Dismissal - Sexual harassment - Right to fair trial) [2014] 5 CLJ 10 [CA]

Mat Shuhaimi Shafiei v. PP
Abdul Malik Ishak, Azahar Mohamed, Mohd Zawawi Salleh JJCA
(Constitutional Law - Validity of impugned legislation - Whether Attorney General had adopted selective prosecution in deciding to prosecute appellant) [2014] 5 CLJ 22 [CA]

The State Government Of Sarawak & Ors v. Teo Soo Chuan
Abdul Wahab Patail, Hamid Sultan Abu Backer, Varghese George JJCA
(Land Law - Easement - Whether easement extinguished by effluxion of time) [2014] 5 CLJ 68 [CA]

HIGH COURT

Perisai Wira Sdn Bhd v. Harum Minat Sdn Bhd & Ors
Mary Lim J
(Contract; Company Law; Civil Procedure - Formation - Agreement - Elements for formation of agreement) [2014] 5 CLJ 88 [HC]

Siti Puyoh v. Rashidah Salam
Douglas Cristo Primus Sikayun JC
(Tort; Damages - Liability - Quantum of damages - Severe eye injury and monocular blindness) [2014] 5 CLJ 104 [HC]

Smart Renovation Sdn Bhd lwn. Jaireh Sdn Bhd; Smart Reader Worldwide Sdn Bhd (Pihak Ketiga)
Che Mohd Ruzima Ghazali PK
(Prosedur Sivil; Undang-Undang Syarikat - Prosiding pihak ketiga - Notis pihak ketiga - Penyingkapan tirai pemerbadanan) [2014] 5 CLJ 116 [HC]

SUBJECT INDEX

ADMINISTRATIVE LAW

Judicial review - Certiorari - Application for - Application to quash decision of Industrial Court - Industrial Court dismissed claim for sexual harassment - Whether Industrial Court committed errors of law - Whether justified in excluding respondent from 'in camera' proceedings in Industrial Court
Malaysia Airline System Bhd v. Wan Sa'adi Wan Mustafa
(Clement Skinner, Zaharah Ibrahim, Mah Weng Kwai JJCA) [2014] 5 CLJ 10 [CA]

CIVIL PROCEDURE

Pleadings - Facts not pleaded - Whether function of court to improve on parties' plea or case
Perisai Wira Sdn Bhd v. Harum Minat Sdn Bhd & Ors
(Mary Lim J) [2014] 5 CLJ 88 [HC]

COMPANY LAW: Resolutions - Specific performance - Claim for - Sale of company together with its assets - Reliance on resolution as agreement - Whether elements of offer, acceptance and consideration present - Whether resolution capable of being an agreement - Contents of resolution - Whether elements for formation of agreement present - Whether resolution contained intention to create legal relationship - Whether remedy of specific performance available
Perisai Wira Sdn Bhd v. Harum Minat Sdn Bhd & Ors
(Mary Lim J) [2014] 5 CLJ 88 [HC]

CONSTITUTIONAL LAW

Legislation - Validity of impugned legislation - Presumption in favour of constitutionality - Whether presumption applied - Whether Attorney General had adopted selective prosecution in deciding to prosecute appellant - Whether s. 4(1)(c) of Sedition Act 1948 restricted person's right to freedom of speech and expression - Whether s. 4(1)(c) inconsistent with art. 10 of Federal Constitution - Whether reasonableness test offended - Whether s. 4(1)(c) violated equality provision in art. 8(1) of Federal Constitution - Whether offended proportionality test
Mat Shuhaimi Shafiei v. PP
(Abdul Malik Ishak, Azahar Mohamed, Mohd Zawawi Salleh JJCA) [2014] 5 CLJ 22 [CA]

CONTRACT

Formation - Agreement - Elements for formation of agreement - Whether satisfied - Company resolution for sale of company together with its assets - Specific performance - Whether resolution capable of being an agreement - Price of subject matter - Whether determined - Whether there was consensus ad idem - Whether there was intention to create legal relationship - Whether damages in lieu of specific performance granted - Contracts Act 1950, s. 66
Perisai Wira Sdn Bhd v. Harum Minat Sdn Bhd & Ors
(Mary Lim J) [2014] 5 CLJ 88 [HC]

CRIMINAL LAW

Dangerous Drugs Act 1952 - Section 39B(1)(a) - Trafficking - Conviction and sentence - Appeal against - Whether prima facie case established - Whether there was proper evaluation of evidence - Whether trial judge correct in arriving at findings of fact - Whether defence rebutted presumption of trafficking - Principle enunciated in Mohamad Radhi Yaakob v. PP - Whether applied
Abdul Aziz Ismail v. PP
(Mohamed Apandi Ali, Linton Albert, Hamid Sultan Abu Backer JJCA) [2014] 5 CLJ 1 [CA]

CRIMINAL PROCEDURE

Appeal - Appeal against conviction and sentence - Accused person convicted for offence of trafficking in drugs - Sentenced to death - Whether prima facie case established - Whether there was proper evaluation of evidence - Whether trial judge correct in arriving at findings of fact - Whether defence rebutted presumption of trafficking - Principle enunciated in Mohamad Radhi Yaakob v. PP - Whether applied - Dangerous Drugs Act 1952, s. 39B(1)(a)
Abdul Aziz Ismail v. PP
(Mohamed Apandi Ali, Linton Albert, Hamid Sultan Abu Backer JJCA) [2014] 5 CLJ 1 [CA]

DAMAGES

Personal injuries - Special Damages - Severe eye injury and monocular blindness - Whether award substantiated by medical reports - Whether error occasioned by trial judge - Whether element of overlapping arose for monocular blindness and pain and suffering
Siti Puyoh v. Rashidah Salam
(Douglas Cristo Primus Sikayun JC) [2014] 5 CLJ 104 [HC]

LABOUR LAW

Employment - Dismissal - Sexual harassment by leading steward against crew - Domestic inquiry - Right to fair trial - Cross-examination conducted 'in camera' - Whether there was procedural impropriety in proceedings before Industrial Court - Whether respondent accorded fair hearing
Malaysia Airline System Bhd v. Wan Sa'adi Wan Mustafa
(Clement Skinner, Zaharah Ibrahim, Mah Weng Kwai JJCA) [2014] 5 CLJ 10 [CA]

LAND LAW

Easement - Extinguishment of - Breach of terms of easements - Easement granted over 50 years ago now used by general public as access road - Whether easement terminated or ceased - Whether State Government liable to compensate respondent for loss of use and enjoyment of servient tenement
The State Government Of Sarawak & Ors v. Teo Soo Chuan
(Abdul Wahab Patail, Hamid Sultan Abu Backer, Varghese George JJCA) [2014] 5 CLJ 68 [CA]

Easement - Extinguishment of - Whether easement extinguished by effluxion of time - Easement granted without limitation of time
The State Government Of Sarawak & Ors v. Teo Soo Chuan
(Abdul Wahab Patail, Hamid Sultan Abu Backer, Varghese George JJCA) [2014] 5 CLJ 68 [CA]

Easement - Right of way - Obligation to maintain and repair right of way - Obligation on grantees
The State Government Of Sarawak & Ors v. Teo Soo Chuan
(Abdul Wahab Patail, Hamid Sultan Abu Backer, Varghese George JJCA) [2014] 5 CLJ 68 [CA]

TORT

Damages - Liability - Quantum of damages - Bursting of tyre from lorry - Severe eye injury and monocular blindness - Special and general damages - Appeal against - Award for pain and suffering - Whether there was overlap of damages awarded - Whether appellant liable against respondent
Siti Puyoh v. Rashidah Salam
(Douglas Cristo Primus Sikayun JC) [2014] 5 CLJ 104 [HC]

Negligence - Duty of care - Failure to exercise care - Whether lorry in roadworthy condition - Whether tyres underwent routine checks - Whether appellant owed duty of care to respondent
Siti Puyoh v. Rashidah Salam
(Douglas Cristo Primus Sikayun JC) [2014] 5 CLJ 104 [HC]

Negligence - Res ipsa loquitur - Application of maxim - Failure to plead - Whether respondent precluded from relying on maxim during trial
Siti Puyoh v. Rashidah Salam
(Douglas Cristo Primus Sikayun JC) [2014] 5 CLJ 104 [HC]

INDEKS PERKARA

PROSEDUR SIVIL

Prosiding pihak ketiga - Notis pihak ketiga - Permohonan pengenepian - Peruntukan pengeluaran notis pihak ketiga - Sama ada dipenuhi - Sama ada kegagalan memenuhi peruntukan mewajarkan pengenepian notis pihak ketiga - Kaedah-Kaedah Mahkamah 2012, A. 16 k. 1
Smart Renovation Sdn Bhd lwn. Jaireh Sdn Bhd; Smart Reader Worldwide Sdn Bhd (Pihak Ketiga)
(Che Mohd Ruzima Ghazali PK) [2014] 5 CLJ 116 [HC]

UNDANG-UNDANG SYARIKAT

Penyingkapan tirai pemerbadanan - Entiti berasingan - Justifikasi untuk penyingkapan tirai pemerbadanan - Sama ada wujud keadaan istimewa - Sama ada wujud elemen penipuan
Smart Renovation Sdn Bhd lwn. Jaireh Sdn Bhd; Smart Reader Worldwide Sdn Bhd (Pihak Ketiga)
(Che Mohd Ruzima Ghazali PK) [2014] 5 CLJ 116 [HC]

ARTICLE

Legal Network Series Article(s)

1. IT'S JUST NOT CRICKET!
    HOTEL SEX IN THE COURSE OF EMPLOYMENT*
[Read excerpt]
    by: JOHN WILSON** [2014] 1 LNS(A) xlii

2. LAW OF NEGLIGENCE - DUTY OF CARE
    - DOES SUCH DUTY ENCOMPASS A NON-DELEGABLE DUTY TO TAKE CARE?
[Read excerpt]
    by: KANCHANA CHANDRAN*, KALPANA CHANDRAN** [2014] 1 LNS(A) xliii

LEGISLATION HIGHLIGHTS

Principal Acts

Number Title Date coming into force Repealing
ACT 761 Finance Act 2014 See s 3 for the Income Tax Act; s 33 for the Stamp Act; s 36 for the Petroleum (Income Tax) Act; s 44 for the Real Property Gains Tax Act and s 50 for the Labuan Business Activity Tax Act -Nil-
ACT 760 Fees (Department Of Museums Malaysia) (Validation) Act 2014 1 January 1991 to 11 June 2012 -Nil-
ACT 759 Islamic Financial Services Act 2013 30 June 2013 [PU(B) 277/2013] - except para(s) 1 to 10 of Schedule 9 and para(s) 13 to 19 of Schedule 9 -Nil-
ACT 758 Financial Services Act 2013 30 June 2013 [PU(B) 276/2013] - except s 129 and Schedule 9 -Nil-
ACT 757 Strata Management Act 2013 Not Yet In Force -Nil-

Amending Acts

Number Title Date coming into force Principal/Amending Act No
ACT A1460 Prison (Amendment) Act 2014 3 April 2014 ACT 537
ACT A1459 Prevention Of Crime (Amendment And Extension) Act 2014 2 April 2014 ACT 297
ACT A1457 Dangerous Drugs (Amendment) Act 2014 15 February 2014 ACT 234
ACT A1458 Supply Act 2014 1 January 2014
ACT A1456 Legal Profession (Amendment) Act 2013 Not Yet In Force ACT 166

PU(A)

Number Title Date of Publication Date coming into force Principal/Amending Act No
PU(A) 147/2014 Local Speed Limit (Federal Roads) (West Malaysia) (Amendment) (No. 2) Order 2014 30 May 2014 1 June 2014 PU(A) 462/1991
PU(A) 146/2014 Federal Roads (Private Management) (Collection Of Tolls) (Guthrie Corridor Expressway) (No. 2) (Amendment) Order 2014 29 May 2014 1 January 2012 PU(A) 298/2005
PU(A) 145/2014 Federal Roads (Private Management) (Collection Of Tolls) (South Klang Valley Expressway) (Amendment) Order 2014 28 May 2014 1 January 2012 PU(A) 309/2013
PU(A) 144/2014 Anti-Money Laundering And Anti-Terrorism Financing (Invocation Of Part Iv) Order 2014 27 May 2014 28 May 2014 ACT 613; ACT 731
PU(A) 143/2014 Anti-Money Laundering And Anti-Terrorism Financing (Amendment Of Second Schedule) Order 2014 27 May 2014 28 May 2014 ACT 613

PU(B)

Number Title Date of Publication Date coming into force Principal/Amending Act No
PU(B) 220/2014 Notice Of Contested Election By-Election Of The Dewan Rakyat Of P. 076 Telok Intan For The State Of Perak 14 May 2014 15 May 2014 ACT 19
PU(B) 219/2014 Notice Under Subsection 70(2) 15 May 2014 Specified in column (3) of the First Schedule ACT 333
PU(B) 218/2014 Notice Under Subregulation 11(5A) - Polling Hours 15 May 2014 16 May 2014 PU(A) 386/1981
PU(B) 217/2014 Notification Of Place Of Refuge Under Subsection 42(1) 15 May 2014 16 May 2014 ACT 670
PU(B) 216/2014 Notification Of Values Of Crude Petroleum Oil Under Section 12 15 May 2014 15 May 2014 to 28 May 2014 ACT 235; PU(A) 275/2012
[2014] 1 LNS(A) xlii AUSTRALIA

IT'S JUST NOT CRICKET!
HOTEL SEX IN THE COURSE OF EMPLOYMENT*

by

JOHN WILSON**


"Throwing curveballs all over the map It's not right, it's not cricket! ...it doesn't really feel like we're playing on a level playing field It's not right 'It's just not cricket"

- The Duckworth Lewis Method (2003)

'Look out!' came the cry as Mr Whittingham went for a midday stroll on recreation grounds owned by his employer, the Western Australian Commissioner of Railways. Mr Whittingham was enjoying his constitutional during the short time that remained in an 'interval' (the lunch break) in his employment.[1]

At the same time, some of his work colleagues, as was the custom and practice in their employment with the railways, were playing cricket on the recreation grounds during their lunch break. When Mr Whittingham turned his head in response to the shout, he was hit in the right eye with a cricket ball.[2] He lost the sight in his eye.


. . .

* Published with kind permission of the Law Society of the Australian Capital Territory. See Ethos No. 230 December 2013.

** John Wilson, Legal Director, Bradley Allen Love.


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[2014] 1 LNS(A) xliii UNITED KINGDOM

LAW OF NEGLIGENCE - DUTY OF CARE - DOES SUCH DUTY ENCOMPASS A NON-DELEGABLE DUTY TO TAKE CARE?

by

KANCHANA CHANDRAN*
KALPANA CHANDRAN**


INTRODUCTION

Any discussion on the subject of duty of care in the context of the law of negligence must necessarily begin with the three-issue formula of the existence of a duty of care, the breach thereof and the causal relationship of that breach to the ensuing damage occasioned to the party to whom the duty of care is owed ('complaining party').

MEANING OF NEGLIGENCE

Before embarking upon a full discussion on the subject of this article, perhaps it is useful to recall what negligence is, in law.

Negligence, as a tort, is the breach of a legal duty to take care, which results in damage, undesired by the defendant to the plaintiff.[1] This legal duty is best explained by the House of Lords (the precursor to the Supreme Court) in Blyth v. Birmingham Waterworks Co,[2] in the following words; "Negligence is the breach of a duty caused by the omission to do something which a reasonable man, guided by those considerations which ordinarily regulate the conduct of human affairs would do, or doing something which a prudent and reasonable man would not do."


. . .

*LLB (Hons) London, LLM (Malaysia), Advocate & Solicitor of the High Court of Malaya, Solicitor of England and Wales, Barrister of the Inner Temple London, Department of Law, Sunway University Business School.

**LLB (Hons) London, LLM (Malaysia), Advocate & Solicitor of the High Court of Malaya, Solicitor of England and Wales, Barrister of the Inner Temple London, Hogan Lovells International LLP, London.


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[2014] 1 LNS(A) xli MALAYSIA

INTERNATIONAL STANDARDS SETTING BODIES IN ISLAMIC FINANCE

by

DR HAKIMAH YAACOB


Introduction

The worldwide market for Shari'ah-compliant Islamic financial products is estimated to be between US $800 billion to $1 trillion. According to London-based IFSL, Shari'ah-compliant assets grew up to $951bn at the end of 2008, which is 25% up from $758bn in 2007, and about three quarters up from $549bn in 2006.[1] IFI is growing at 15-20 per cent per annum - a growth rate that is much greater than the growth rate of the traditional (conventional) financial industry. Globalization is the process through which the increasingly free flow of ideas, people, goods, services and capital leads to the integration of economies and societies.[2] Successive waves of globalization particularly from the 13th century onward, have resulted in the expansion of the world trade, the diffusion of technology, extensive migrations of peoples and the cross fertilizations of countries have prospered. There are few international standards setting bodies established for the purpose of creating standardisation of understanding and good practices. For example, the establishment of the Islamic Financial Services Board (IFSB), which is based in Kuala Lumpur, was officially inaugurated on 3rd November 2002 and started operations on 10th March 2003. It serves as an international standard-setting body of regulatory and supervisory agencies that have vested interest in ensuring the soundness and stability of the Islamic financial services industry, which is defined broadly to include banking, capital market and insurance. In advancing this mission, the IFSB promotes the development of a prudent and transparent Islamic financial services industry through introducing new, or adapting existing international standards consistent with Shari'ah principles, and recommend them for adoption. As at April 2014, the 184 members of the IFSB comprise 59 regulatory and supervisory authorities, eight international inter-governmental organisations, 111 financial institutions and professional firms as well as six self-regulatory organisations (Industry Associations and Stock Exchanges) operating in 45 jurisdictions. To this end, the work of the IFSB complements that of the Basel Committee on Banking Supervision, International Organisation of Securities Commissions and the International Association of Insurance Supervisors. As at April 2014, the 184 members of the IFSB comprise 59 regulatory and supervisory authorities, eight international inter-governmental organisations, 111 financial institutions and professional firms as well as six self-regulatory organisations (Industry Associations and Stock Exchanges) operating in 45 jurisdictions.


. . .


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