Broker Agreement Malaysia

In accordance with the arbitration provisions of the agreement, the Taiwanese advisor subsequently commenced arbitration proceedings against the Swiss company in accordance with Swiss international arbitration rules in order to obtain payment of his commission. The Court of Arbitration found the Taiwanese councillor to be under-assigned and also found that the consultant agreement was valid. It is fair to say that disputes generally concern the right of advisers to a commission or commission. To avoid payment of such fees or commissions, the supplier or supplier often uses the argument that the contract is illegal under current legislation. However, be warned that such arguments are not always supported and may also result in greater losses, as the case of Siemens AG, which has faced more than 2,700 such business commission agreements with intermediaries around the world, at a cost of more than $3 billion in fines and legal fees for violating the International Convention on the Prohibition of Foreign Bribes. , a pact signed by most of the world`s industrialized countries. The Swiss company took the case to the Bundesgerichtshof for review of the partial arbitration, the deadline for quashing the award having already expired. The Swiss company argued before the Supreme Court that the agreement had illegal content because it was considering corruption, and presented new evidence to support its assertions. To sum up the fact that companies and individuals who pay illegal commissions on projects are now subject to increasing legislation that makes these commissions illegal. Even if a party to such an agreement sees a loophole to evade payment to the agent by asserting that the agreement cannot be enforced, since it is in favour of the execution of an illegal act, that by making such a defence, it may be subject to prosecution under the growing global laws.

In another case where the identity of the parties was retained, a Swiss and Taiwanese party entered into a commercial commission agreement concerning the Swiss company which was awarded a contract for the management and maintenance of an electricity generation unit in Taiwan. Again, the agreement provided that all disputes would be settled through arbitration proceedings in Switzerland, in accordance with Swiss law. In 1990, Thales, the French manufacturer of warships, entered into an agreement with Frontier AG, a Swiss-registered company, and hired it as an agent. Under the agreement, Frontier is expected to receive compensation equal to 1% of the potential sale value of Thales` contract with Taiwan for its security assistance in the sale of warships. The main actor behind Frontier AG was Alfred Sirven, a senior official of the French oil group ELF. Foreign contractors and suppliers operating in Malaysia and many other countries may sometimes attempt to enter into and execute contracts with agents, consultants and other intermediaries who assist them in tendering procedures, negotiations and odd opportunities in the execution of contracts. These advisory or service agreements generally provide that in the event of a dispute in Switzerland, they are subject to arbitration proceedings for settlement under Swiss law. Although the two examples mentioned above and the Siemens incident relate to foreign companies, foreign companies that practice such practices in Malaysia are not the only ones that have to consider the consequences for the conclusion of such agreements. Malaysia has its own legislation that allows Malaysian companies to obtain such contracts abroad. In the past, Switzerland has been one of the preferred places for international trade arbitrations. Arbitration proceedings that have taken place and are still ongoing in Switzerland concern not only contracts between European companies, but also east-west trade contracts or contracts between the parties in the northern and southern hemispheres.