Hi all,

Just would like to ask wondering why developers usually will set up new sub company whenever they launched new project? Is that easier for them to wind up if there is anything goes wrong e.g. being sued by buyer and etc?

Yes.

Can close it down if the project fails or taken to court.

The parent company can wash hands later.

Damn. I am considering to sue a developer for the poor quality and demand the recalculation of LAD. Basically they can just close down the company as they wished?

Yes.

The laws here only protect the developers.

If the project is abandoned and developer gone bankrupt, pretty nothing much u can do about it.

For LAD, developers always negotiate with the owners for a lower settlement which is not only illegal but also wrong. The lawyers will give excuses like the company will be closing down or etc which are all BS!

Yes. I understand LAD should be calculated from booking fees booking from the precedent case, but this developer want to calculate it from SNP date and said no negotiations. Very arrogant. But now, I am a bit hesitate to go further, after knowing they can just wind down like that. There are still on-going projects running near my project by this developer, but I am not sure if how they really closed down their business and washed their hand. There is no way to drag their parent company down also? As they are using the same address?

This post has been edited by shanjuen: Oct 18 2023, 07:07 PM

yes correct. i rarely seen developers in malaysia gotten into serious trouble. those tan sri's are so influential within the underground world and also in corporate sectors. more like building 3rd or 4th vacation mistress homes in bukit tunku, damansara heights, bangsar, tropicana, sierramas......


As these saying goes: Laws are spider webs through which the big flies pass and the little ones get caught. - Honore de Balzac

If the LAD is below 50k, use the Housing Tribunal.

If about 50k, need to engage a lawyer.

If the developer has many projects under the same subcompanies the very likely they won't close down over 1 case.

Let assume that all developers have no bad intention and purely for business and profit purpose ...

1. Tax purpose ... diff project, diff tax file

2. Management

3. Shareholding spread, if is joint venture.

not for only developer, very common big companies also have such practice

My parent sue a dev before and they won the court case , the company end up declare bankruptcy so wasted alot time and effort .