ABSTRACT
Many countries in Asia have been seeking to overhaul their existing laws with a view to bringing them closely into line with international standards of practice. As the pace of legal harmonization and globalization is increasing in many Asian countries, Malaysia is no exception. This chapter will argue that Malaysia has undergone massive review in the commercial legal framework to ensure that it is in accordance with international practice of corporate governance standards, which have been developed by multinational bodies such as the World Bank and the Organisation for Economic Co-operation and Development (OECD). The major stimulus to reform corporate law in Malaysia was not primarily the harmonization of its law with other states but the increasing awareness that the current legal framework was found to be inadequate, lacking in clarity and detail, and based on an unsystematic approach.
