Posts Tagged ‘music’

Legal Hold

legal hold

Ensign’s legal fees piling up
LAS VEGAS — Financial disclosure reports show Republican U.S. Sen. John Ensign of Nevada has spent more than $550,000 in the past three months on legal fees.

Legal Costs

legal costs

Legal Costs in Court Case of the late Princess of Wales.?

How much of the six million pounds costs will Fayed pay?
Why should the tax payer foot this bill,? It was he who brought the case to court. Thank God it is now over and the passing of this lady can be left in peace and especially for her sons.
Correct, it was the Coroner that may the final decision, nevertheless it was Fayed that instigated the proceedings to that state. By the way this Al being tacked onto his name is the equivalent to a Knighthood which he has not got.

I am afraid you have it ALL wrong. A coroners inquest is not brought by an individual. Al Fayed may have wanted it but the coroner decided to have this inquest under the Coroners Act 1988. Section 8 is where you want to be looking.
I am not having a go but you really need to be aware of the laws in your country before slinging accusations around.

xxFJ

Father Afghanistan MoD withdraws complaint the father of a soldier killed in giving up legal action against the MoD over equipment and claimed the court costs could bankrupt him.

Legal Insurance Jobs Chicago

legal insurance jobs chicago

Calendar
Submissions for the Community Calendar are required 10 days preceding the date of publication. Send to: Pioneer Press, 3701 W. Lake Ave., Glenview IL 60026. Information may be faxed to (847) 486-7495 or e-mailed to mbottari@pioneerlocal.com.

Abbey Legal

abbey legal

Fbi Wants Records Kept Of Websites Visited

I tend to do a lot of Facebook and Google stalking.  Type in the name, see what he or she has been up to, and clear history.  It’s pretty harmless and who is going to find out anyway?  What, the FBI?  Really?  Yes, really. The FBI is pushing to have ISPs keep detailed records of what web sites customers have visited for up to two years.

FBI Director, Robert Mueller is asking Congress to make it mandatory that Internet providers store users’ “origin and destination information.”  Along with the FBI, this idea is popular with state computer crime investigators.  Both groups believe that logging user history would help with investigations of child pornography and other serious crimes.

Since 1986, phone companies have been required to keep a record of “the name, address, and telephone number of the caller, telephone number called, date, time and length of the call” for a period of 18 months.  Greg Motta, chief of the FBI’s digital evidence section, is arguing that this new act is merely an extension of call logs and is necessary for the FBI to adapt to the newer technology.

The details of the proposal are still very vague.  It has not been decided whether Internet providers would need to log IP addresses, domains, host names, or actual URLs of the sites visited.  If the FBI insists on the fourth possibility, there could be serious legal implications.  Recording URLs visited would most likely be considered deep packet inspection, a violation of the Wiretap Act.

Another problem is practicability.  Eighteen million website page hits occur every hour.  Multiply this by 24 hours by 700 days and you have a ton of data.  Sorting through this would be very time consuming and might not be worth the possible advantages.

The Justice Department is currently weighing the positives and negatives of such a law and, as of the writing of this article, does not have an official position on data retention.

Abbey Connick
Intern

How do you grieve over a spouse?

I lost the love of my life/parter on April 30th. We have a little girl (almost 2). I have 4 other children from a former marriage. I’ve done quite well since August, when my doctor put me on Lexapro and Xanax for my depression/anxiety. The 6 month mark is coming up as well as Abbey’s 2nd birthday. I also have other issues with the other kids and other legal aspects. For those who have lost a mate how do you prioritize your life? Since his death I’ve always tried to put the kids first, me second and everything else whenever I’m not crying. I need some advice on how to put my life back together without him. I feel so overwhelmed. Any pointers???

I disagree with you and with the first answerer. Put yourself first. I don’t mean to ignore or abuse your kids, but nobody gets better until you do.

My wife of 18 years died in 2001, after a very long illness. I know that this time can be incredibly difficult and each person deals with it in a different manner.

For me, the most helpful thing in my recovery was grief counseling. Our local hospice offered a program for spouses of people who died. They also have programs for children, parents, friends, etc. It helped me get better to go through counseling with other people who had lost a husband/wife. We had 4 children who were from 13 to 24 years old when she died.
Your kids are going through this thing, each in their own way. They will understand that you need to, also. As they see you get better, it gives them permission to get better, too.

I am also medicated and I know that helps a lot.

The “anniversary” dates will always be hard, but I’ve found that, over time, they become more special and less difficult.

I wish the best for you and your family. You’ll make it!

West Legal

west legal
How did Nevada keep prostitution legal while the other Old West states lost or gave up this right?

Please answer this one seriously. I really do wonder how and for what reasons this state was able to keep this ability while it was not kept throughout the rest of the United States. There must be some kind of story to it?
Thanks to those who answered already! But I am really trying to single out the difference between Nevada and the other 49 states. What happened in the other 49 states to make prostitution ILLEGAL and KEEP it legal in Nevada. Was there a specific court case or seris of talks that occured in Nevada back in history surrounding this industry?

The Federal government cannot tell States how to run their own government and laws. Called States Rights. On top of that, until after WWII Nevada was a very sparsely populated state. Those that lived there paid little attention to a rather minor industry. It is not as prolific as some media would have you believe. It is really a very small operation.

West Virginia make marijuana cannabis legal

Market Your Company With the Help of Design Agency North West

When you are managing a business, you have to know that marketing it is very essential. This is an activity for every business that should not be taken lightly. The success of your company or corporation depends on the efficiency of your advertising strategies. Coming up with the right marketing methods require wise decision and in-depth research. If you want to ensure the future of your business, you have to seek the assistance of a reliable design agency. This way, you will be able to provide your company with presentable marketing materials such as brochures and banners. The logo or brand design of your business also counts, when it comes to drawing the attention of customers or clients.

If your business is based in the United Kingdom and you are searching for a design agency North West, you can opt for the services of Principal Image. This agency offers marketing and graphic design services all throughout the country. It is situated within South Manchester, and has been serving its clients for seventeen years. Since it has been in the industry of marketing and design for several years, it has gained extensive training and knowledge regarding marketing design. You can take advantage of this fact by opting for the services of this advertising agency North West. It offers logo branding and design, catalogue and brochure design, website design, packaging design, and SEO or search engine optimisation.

When you refer to marketing design, this pertains with the planning or designing of strategies that will help obtain success for your business. It is not only huge companies that need to plan the marketing methods of their business. Even small and medium-sized businesses need to come up with effective marketing plans. No matter the size of a business organisation, it requires careful marketing and design techniques to succeed and gain income. If you are in the United Kingdom and are looking for an advertising agency, North West presents you with Principal Image. Through this company, you will be able to provide your business with the most eye-catching logo.

Over the years of its service, Principal Image has turned into a respected marketing and design agency. North West location for this company is found in Cheshire, specifically on Knutsford’s outskirts. Its office in South Manchester lets Principal Image offer its services to the whole of United Kingdom. There are different kinds of marketing and design assistance provided at Principal Image. These include the formulation of brands or logos, brochures, leaflets, posters, catalogues, packaging, and exhibits. Principal Image also provides search engine optimisation and website design services. Through the help that you get from the company, you will be able to increase the visibility of your business to your target customers. As more and more clients know about your company, the more you will earn profit.

The portfolio of Principal Image involves several projects such as advertising, print design, branding, product development, multimedia, exhibitions, photography, promotions, and others. It caters to a broad range of clients, mainly companies. Each of the projects of Principal Image has different specifications and considerations. These are seen in the company’s approach and exclusive design methods. It has dealt with projects that focus on areas like financial, home wares, soft furnishing, IT, legal, and others. The marketing and design knowledge of this advertising agency North West can be implemented to any type of advertising project.

About the Author

For your marketing and designing needs, contact Principal Image. Their design agency North West and Advertising agency North West will be glad to help you.

Legal Discovery

legal discovery
LEGAL QUESTION: What does “Motion for Leave to Undertake Discovery” mean?

We have been served to be sued by a former landlord. We replied and filed in court a reply (15 months ago) – with proof we were not in the wrong. No court date set, nothing has happened.

The statute of limitation doesn’t refer to the time a case can be in court, but rather to the time that a person has to file after being the victim of an alleged crime (or in your case a tort since it is civil court). The discovery stage is a time where both sides can look for evidence (which you already have). When it is time to go to court I would produce your good evidence and make a motion for summary judgment. This means that factual evidence (such as receipts from the landlord) clearly shows you have not committed the tort. If you have really good evidence, you might not need a lawyer, but seriously it would be good for you to have one!

This is a little dense but it is a fairly good explanation.

http://www.britannica.com/EBchecked/topic/477661/procedural-law/28417/The-preparatory-stage

And here is how to file a motion for summary judgment:

http://docs.google.com/gview?a=v&q=cache:GEY_ge3aZW0J:www.wiwd.uscourts.gov/assets/pdf/bbc_proc_mo_sum_judg.pdf+filing+for+summary+judgement&hl=en&gl=us&sig=AFQjCNEOfgilvdWn0cGLbnK6–uspCRK-w

Applied Discovery Discusses Replacing Cisco with Brocade for Critical Legal Services Data Center

10 Critical Decisions for Successful E-discovery Part 1

The Information Management Journal/September / October 2007- Today’s explosion of electronic data, coupled with the December 2006 amendments to the Federal Rules of Civil Procedure (FRCP) concerning electronically stored information (ESI), requires information and legal professionals to expand their knowledge about handling electronic discovery. The recent changes to the FRCP include:

* Definitions and safe harbor provisions for the routine alterations of electronic files during routine operations such as back ups [Amended Rule 37(f)]

* Information about how to deal with data that is not reasonably accessible [Amended Rule 26(b)(2)(B)]

* How to deal with inadvertently produced privileged material [Amended Rule 26(b)(5)]

* ESI preservation responsibilities and the pre-trial conference. [Amended Rule 26(f)]

* Electronic file production requests [Amended Rules 33(d), 34, 26(f)(3), 34(b)(iii)]

There are many opinions about how ESI should be planned for, managed, organized, stored, and retrieved. Some of the available options are extremely costly in terms of their required financial and time commitments. Constantly changing technologies only add to the confusion. One area of confusion is the distinction between computer forensics and electronic discovery; there is a significant difference. These are described in the sidebar Computer Forensics vs. Electronic Discovery.

Making the Right Choices

Successfully responding to e-discovery within the constraints of the amended FRCP requires organizations to make many critical decisions that will affect the collection and processing of ESI.

Collection Decisions

The following questions need immediate answers:

1. Are e-mail files part of this project? If so, do any key people maintain an Internet e-mail account, in addition to their corporate accounts?

The sheer volume of transactions for large e-mail providers prohibits the storage of massive amounts of mail files. Many Internet e-mail account providers, such as AOL, BellSouth, and Comcast, retain their e-mail logs no longer than 30 days. If a case could potentially require the exploration of e-mail from Internet accounts, the discovery team must expeditiously request the records, or they may be gone forever. This usually requires a subpoena. In rare cases, fragments of Internet e-mail may be recovered forensically from an individual’s hard drive.

2. Is there any chance illegal activity may be discovered?

Many cases involving electronic data uncover wrongdoings. These situations may involve a member of the technology department or a highly technical employee. In these cases, an organization’s first inclination may be to terminate the employee(s) involved and determine the extent of any damage prior to notifying law enforcement agencies.

This may be exactly the WRONG thing to do. If the wrongdoing is by a technical person, there is a chance that he or she is the only person who knows how to access the files, find the problem, or fix it. This is often the person who knows the passwords for mission-critical applications. The technical employee usually has the ability to work and access company files remotely. Unless such access is eliminated prior to the employee’s termination, it is possible that a terminated or disgruntled employee may access the network and do great damage.

A better solution is to restrict the employee’s complete access privileges, both local and remote. The employee is then notified of management’s knowledge of the situation and given an opportunity to cooperate to minimize the damage. If the situation involves criminal matters, especially if financial or medical records have been compromised, a good decision is to involve law enforcement as early as possible. Electronic criminals frequently disappear and destroy all evidence of their activities.

3. Is it possible that deleted or hidden files may play an important role in this case?

There are three ways to collect electronic files for discovery:

* Forensically ? as described in the sidebar

* Semi-forensically ? using non-validated methods and applications to capture files

* Non-forensically using simple cut and- paste copy methods to move copies of files from one location to another. These methods do not include hashing files to ensure the files have not changed, which involves using a hash algorithm to create a mathematical fingerprint of one or more files that will change if any change is made to the collection.

For some matters, the content of electronic documents is all that matters. The context of the files ? who created them, how they are kept, how they have been accessed, if they have been changed or deleted ? is not as important.

For other cases, contextual information, including finding deleted files, is vital and requires a forensic collection. This includes

* Ensuring legal search authority of the data

* Documenting chain of custody

* Creating a forensic copy using validated forensic tools that create hash records

* Using repeatable processes to examine and analyze the data

* Creating a scientific report of any findings

Determining the value of electronic forensic file collection must be done prior to any data being captured. Once semi- or non-forensic methods have been used, it is impossible to return records to their original states.

4. Are backup tapes part of an active collection?

Some cases involve historical issues, making the method of handling computer backups important to address immediately.

Most businesses use a schedule of rotating their backup media. For example, in a four-week rotation, daily backups are done for a week and then those tapes (or drives) are taken offsite for storage. A new set of media is used for the second, third, and fourth weeks, and then those three tapes are stored offsite. On the fifth week, the tapes/drives from the first week are reused. This process is done for financial reasons, as it is extremely cost-efficient.

Backup tapes may become part of the active information required to be kept under a litigation hold. This requires cessation of any rotation schedule, and the 2006 amendments to the FRCP make it critical for the legal team to convey that information to the technology employees responsible for business continuity processes.

About the Author

Karen Unger founded American Document Management in 1989. She is an expert on document imaging and document scanning .

Para Legal

para legal

The Role and Scope of LPO in Present Scenario in India

The era of globalization followed by the localization needs have opened the threshold for the legal Process Outsourcing (LPO) in India. It has given a fruitful opportunity for the lajwyers and the legal firms in India to interact with the solicitor firms of USA and UK, and get to know first hand about the diversified legal processes operating in the international market.

The key thrust area where LPO industry in India is rendering the services largely includes:

• ‘Statutory’ Intellectual Property vis-à-vis Patents, Trade Marks, Copyrights, Industrial Designs, Plant Varieties, Printed Circuits and the Geographical Indications.
• ‘Non Statutory’ Intellectual Property vis-à-vis Trade Secrets, Confidential Information, Trade Dress, and the Equitable Right to prevent ‘Passing Off.‘
• Para Legal Support comprising, Back Office,  Billing, Coding, Data Management, E-filing, Legal Transcription, Scanning, Secretarial Services  etc.
• Contract Management, aiming for drafting and managing terms of contracts involved in business and interalia.
• Document Management, focusing on preparing and managing legal documents that conforms to all and any kind of regulatory requirements.
• Litigation support vis-à-vis Document creation using litigation support applications; First level document review & analysis; Manage data / index / images; Scanning / coding of documents with vendors; Deposition preparation and digesting; Substantive document review and analysis; E-discovery etc.

LPO industry is gradually growing in India, and as per the ASSOCHAM projected reports, it is slated to grow from its current share of 3-4 per cent to 6-7 per cent in the 250 billion dollar global market of Legal Process Outsourcing, by 2010. This would itself call for over 70,000 legal professionals to fill the positions by 2015. Ushering in a dynamic panorama, the LPO industry in India has tremendous potential to scale new heights and offer efficient legal processing in times to come.

For  more info contact: Legal Process Outsourcing Company

http://www.overlegengroup.com, Email: info@overlegengroup.com

About the Author

For more info contact: Legal Process Outsourcing Company
http://www.overlegengroup.com, Email: info@overlegengroup.com

What law says you can not kick out a 17 year in Michigan?

I am under the impression that you can not kick out a 17 year old son/daughter in the state of Michigan with out that said minor agreeing to an emancipation. Easy 10 points for attorney or para-legal, please provide the MCL number(s) regarding the said question. Thanks-

try here

http://www.legislature.mi.gov/mileg.asp?page=getobject&objName=mcl-chap722

Aquino Truth Commission critics: Bring on President Benigno Aquino III, SC on Sunday dared critics of the Truth Commission refers to the question to the Supreme, if they want to the constitutionality of the fact-finding body, creating the challenge.

One Legal

one legal
In which cases can the separate property of one spouse be taken to pay a legal judgement against the other?

With an existing prenup designating separately-owned property acquired prior to the marriage, in what cirumstances can the separate property of one spouse be taken to pay a legal judgement against the other spouse?

in noway

lost boyz – 1, 2, 3 – Legal Drug Money

Purchasing Your Own Legal Forms

Have you ever thought about selling a home, planning your estate, incorporating a small business, or building or remodeling your home? Chances are good that you have. Legal matters permeate our daily lives. According to an ABA survey, seven out of ten households had an occasion in the past year necessitating the hiring of an attorney. Out of those seven households, only half responded that they actually would hire the attorney. According to the same survey, two thirds of respondents agreed with the following statement: “Lawyers are more interested in making money than in serving their client.” This widespread public perception comes as no surprise in today’s failing economy, in which many of us living with pressing legal needs simply can’t afford to hire legal help. Additionally, for the average consumer, legal services are among the most difficult to buy, since doing so is rife with uncertainty and potential risk. Today’s average consumer worries that attorneys are not upfront about fees, that they charge too much for services, and that they take too long to resolve matters.

You might be surprised to find that many legal matters do not require the hiring of an attorney. Many people are successfully meeting their legal needs with the use of legal forms. Websites such as
www.readybuiltforms.com have become increasingly popular among consumers who have purchased thousands of their legal forms online. ReadyBuiltForms.com specializes in providing an easy way for the public to purchase legal forms for much less than what they would be required to pay an attorney. The legal forms on the site can be purchased for anywhere from $4 to $30 per legal form. The forms are so cost efficient that even attorneys have purchased legal forms from ReadyBuiltForms.com.

Purchasing Legal forms online provide essential benefits in terms of convenience, simplicity, cost, time and risk. In terms of convenience, one can complete a legal form from the comforts of home, or at a nearby coffee house if he or she so chooses. In terms of simplicity, legal forms are well researched, and simple for all to use. With legal forms, there is no need to “re-invent the wheel”, so to speak. In this way, legal forms make the law more accessible to everyone. In terms of cost, legal forms cost a small fraction of what most attorneys would charge for their time to complete them. In terms of time, one can complete a document versus having to make repeat phone calls to his attorney to get the job done. Simply put, legal forms provide legal expertise at your fingertips!

To sum it all up, those of us carefully watching our budgets in this frightening economy should not despair. Buying legal forms online are a cost-effective, convenient way to take care of your legal matters.

About the Author

www.ReadyBuiltForms.com is operated by Creative Legal Solutions, LLC. Creative Legal Solutions was founded by a team of attorneys, each versed in different, specific and relevant areas of law. Therefore, each form is well researched, and accurate, while virtually taking the guesswork out of handling one’s personal legal matters. The legal forms on the site can be purchased anywhere from $4 to $30 per form. The forms are so cost efficient that even attorneys have purchased legal forms from ReadyBuiltForms.com. ReadyBuiltForms.com is well worth one’s search for cost-efficient, everyday legal solutions.

Litigation Vs Corporate

litigation vs corporate

Outsourcing Vs Labour Brokering

Especially in South Africa labour brokering is often confused with outsourcing and the biggest culprits in promoting this myth is the labour brokering industry itself. Now I would like to state very clearly that I am not against labour brokering and I am a firm believer that there is an important place for the industry in South Africa. That said I think it is prudent to ensure that the two very different industries are not confused.

Firstly, labour brokering is the provision of staff on an outsourced basis, whilst outsourcing is the fulfilling of a function within which a staffing solution may be provided. The methodology and profit generation of these industries is vastly different. Allow me to explain in slightly more detail.

A labour broker earns its revenue from employing and deploying as many staff members as possible. The profits are generated from invoicing their clients more than what they pay the employee. The biggest reason a  company is willing to pay a premium for this service is the “passing-on” of risks associated with employing staff and in some cases the increased costs, if any,  can be justified by the decreased administration requirement.

A true outsourcing company, on the other hand, generates its revenue from addressing the need of the company within a function at as low a cost as possible and charging the client a premium for that service. Usually at a lower rate than employing staff to fulfil that function. The focus of the outsourcing company is therefore not on their clients staffing requirement but rather on the function that needs to be fulfilled

So in other words the outsourcing company generates its margin from increasing its efficiency and by leveraging the intellectual capital within the company.  For example using better software and more expensive staff than what its clients could afford and sharing these resources with more than one client. On the other hand the labour broker generates its margin from its administrative abilities and from decreasing legal risk.

So which one should your company choose? Simple, it depends on your need. If you require a warm body and do not want litigation risk and the administrative head ache of employment, labour brokering is a viable option for you. If you on the other hand require a function within your company to be managed more effectively and at lower cost outsourcing should then be looked at.

In conclusion, both industries have an important place in the South African economy and address the needs of companies to reduce risk and potentially costs. That said they should not be confused or pit against each other.

Papa John’s Announces Second Quarter Results
LOUISVILLE, Ky.—-Highlights Second quarter earnings per diluted share, excluding the impact of consolidating the results of the BIBP cheese purchasing entity, of $0.43 in 2010 vs. $0.36 in 2009 Second quarter earnings per diluted share including the results of BIBP of $0.49 in 2010 vs. $0.51 in 2009 Domestic system-wide comparable sales increased 0.4% for the second quarter International …

Litigation Vs Corporate Law

litigation vs corporate law

International Trade and Finance

INTRODUCTION
The explosive growth of international financial transactions and capital flows is one of the most far-reaching economic developments of the late 20th century. Net private capital flows to developing countries tripled – to more than US$150 billion a year during 1995 to 1997 from roughly US$50 billion a year during 1987 to 1989. At the same time, the ratio of private capital flows to domestic investment in developing countries increased to 20% in 1996 from only 3% in 1990. Hence, this has effected a shift from the national economy to global economies in which production and consumption is internationalised and capital flow freely and instantly across borders.

Powerful forces have driven the rapid growth of international capital flows, including the trend in both industrial and developing countries towards economic liberalization and the globalisation of trade. Revolutionary changes in information and communications technologies have transformed the financial services industry worldwide. Computer links enable investors to access information on asset prices at minimal cost on a real time basis, while increased computing power enables them to rapidly circulate correlations among asset prices and between asset prices and other variables. At the same time, new technologies make it increasingly difficult for governments to control either inward or outward international capital flows when they wish to do so.

In this context, perhaps financial markets are best understood as networks and global markets as networks of different markets linked through hubs or financial centres.

All this means that the liberalisation of capital markets and with it, likely increases in the volume and volatility of international capital flows is an ongoing, and to some extent, irreversible process.

It has contributed to higher investment, faster growth and rising living standards. But this can also give rise to shocks and stresses resulting in financial crisis as we have all witnessed in 1997 and 1998.

Testimonies to the risks of open capital markets are the several waves of instability in the financial markets in early 1998 and again in the wake of the Russian crisis in August/September 1998. To illustrate, net private capital outflows from the five countries most affected by the crisis, namely, Indonesia, Korea, Malaysia, Thailand and the Philippines rose to US $28.3 billion in 1998, reflecting mainly the decline in net bank and non-bank lending. Meanwhile, foreign direct investment which had been one of the main sources of growth during the pre-crisis period in these countries remained sluggish in 1998, amounting to US$8.5 billion as compared to an average amount of US$17.8 billion during the period 1995 to 1995.

Global trade has experienced a slowdown over the past two years due to trade contraction of East Asian economies. Generally, world GDP and trade growth slowed in the past 1997/1998 as the East Asian crisis deepened and its repercussion were felt increasingly outside the region. Asia recorded the strongest import and export contraction in volume and value terms of all regions of the world. The dollar value of Asia’s imports registered an unprecedented decline of 17.5%. The five Asian countries most affected by the financial crisis that broke in mid-1997, that is, Malaysia, Indonesia, Philippines, the Republic of Korea and Thailand experienced import contraction by one-third.

In the context of these powerful trends, I like to discuss a few significant the issues relating to them, particularly from a capital market regulator’s perspective. Given the breadth of the topic at hand, and in the interest of keeping to time, please allow me to focus particularly on current trends and difficulties faced in the capital markets.

DEVELOPMENTS IN ELECTRONIC COMMERCE AND CAPITAL MARKET REGULATION
Developments in computer and information technology have made dramatic changes to the way the financial services industry operates. These changes are affecting and will affect every aspect of the financial services industry and offer the possibility of reduced costs in raising capital, greater efficiencies in the mobilisation of domestic and international savings and the provision of better, cheaper investment products more closely tailored to the needs of different investor segments. The convergence of computer and communications technology is promoting the development of computer mediated networks, allowing for users to communicate and transmit data and other information regardless of boundaries and distance. As communication costs continue to fall, the potential of outsourcing grows.

These changes will affect –

• The way investment products are offered, distributed and marketed and the way in which investors access information about the products and entities involved;
• The activities of financial services intermediaries, especially advisers, and the way they deal with investors;
• The continued blurring of product and institutional boundaries, and even the scope of financial services sector itself as non-traditional entities take on some of the functions of financial intermediaries;
• The methods of distribution and marketing of investment products which will increasingly draw upon the techniques of mass marketed consumer products; and
• The way secondary trading in investment products takes place as greater scope for direct investor transactions and low cost competitors to established securities and futures markets becomes more of a reality.

Just as electronic commerce affects investors and providers of financial products and services, it will affect the role of corporations and capital market regulators. Just as electronic commerce facilitates activities across jurisdictional borders, it poses in clear terms questions about the practical enforceability of national laws. As well as practical enforcement questions, electronic commerce also raises issues about the role that capital market regulators should play and the effectiveness of many of the traditional regulatory approaches and mechanisms that have been employed by them. An example might be an offering of securities made without a prospectus or registration statement on the Internet by a person in a jurisdiction with which the capital market regulator has no regular contact or mutual enforcement arrangements. There are also concerns about illegal and fraudulent activity on the Internet.

In this regard, the Malaysian position is that it is committed towards a structured development of electronic commerce. Towards this end, Malaysia has proposed to introduce a National E-Commerce Masterplan. This Masterplan should focus on key initiatives which will create momentum in trading via e-commerce. Besides looking at developing the technological infrastructure such as telecommunications infrastructure and systems providing for electronic delivery of goods as well as payment, the Government is also aware that there are legal and regulatory issues which will arise with regard to e-commerce. Malaysia has introduced several sets of laws catered towards proper regulation of e-commerce known as ‘Cyberlaws’. The Cyberlaws which have been introduced include, among others :

(i) Computer Crimes Act 1997

This Act provides for a framework to counter computer offences such as unauthorised access to computer material, crimes of fraud and dishonesty through the computer, unauthorised modification of contents of a computer and so on. The Act is not limited by jurisdiction. It has effect outside as well as inside Malaysia. Where a computer crime is committed outside Malaysia in respect of computers or data in Malaysia or that which may be connected to or used in Malaysia, the crime may be treated as a crime within Malaysia and the perpetrator may be dealt with under the provisions of this Act; and

(ii) Digital Signatures Act 1997

This Act addresses issues of security and authenticity of electronic transactions and it allows for greater confidentiality and integrity of messages. It allows for businesses to use electronic signatures instead of hand-written counterparts in legal and business transactions. The Act provides for the treatment of document signed with a digital signature created in accordance with this Act to be treated as legally binding as if the document was signed with a handwritten signature.

The development of an effective regulatory framework is essential in attracting and maintaining confidence for the world in trading with Malaysian counterparts via electronic means. The regulatory framework as it stands is currently incomplete as many other areas such as electronic banking and broking are still in the process of development.

To instil confidence, Malaysia must be able to provide for regulatory certainty and coherence as well as prevent regulatory capriciousness. In relation to financial services, a major consideration is cross-border implications. The Securities Commission, as an example, is currently looking at issues relating to Internet offering of securities and fund management and broking services over the Internet. A re-examination of current laws would need to be conducted to ensure that they have not been overtaken by technology and to restructure the laws so that they are technology neutral.

As far as the capital market is concerned, the Securities Commission recognises that electronic commerce is an area where it is important that the regulatory infrastructure responds in a positive and timely way to facilitate market developments and not hinder innovation in market products and processes. We believe that there are important benefits to be gained through the Commission’s facilitation of market developments in this area for the competitiveness of the Malaysian capital market, efficiencies in the operation of our capital markets and the better making of investors at lower cost. At the same time, the Securities Commission considers that it is important for the successful implementation of electronic commerce that investors retain confidence in the integrity of the market for investment products.

LIBERALISATION VS. PROTECTIONISM

On the issue of liberalisation vis-à-vis protectionism, there has been a proliferation of multi-lateral trade agreements since the middle of the century. Such agreements provide for a framework of rules within which nations are ‘obligated’ to assure other nations signatory to the agreement of a sovereign’s approach towards international trade. For example, Malaysia is a member of, among others, the World Trade Organisation through which it is a signatory to the GATS (General Agreement on Trade in Services) and GATT (General Agreement on Tariffs in Trade), APEC as well as ASEAN, all of which have the objective of achieving liberalised trading of goods and services within specified, albeit not immediate, time frames. Through these trade blocs, Malaysia has committed itself to progressive liberalisation which essentially entails a gradual opening of the economy to foreign participants.

The globalisation of economies is intrinsically linked to the internationalisation of the services industry. It plays a fundamental role in the growing interdependence of markets and production across nations. Information technology has further expanded the scope of tradability of this industry. Access to efficient services matters not only because it creates new potential for export but also it will be an increasingly important determinant of economic productivity and competitiveness. The main thrusts of the ‘services revolution’ are the rapid expansion of the knowledge-based services such as professional and technical services, banking and insurance, healthcare and education. Responding to this phenomenon, regulatory barriers to entry in service industries are being reduced worldwide, either through unilateral reforms, reciprocal negotiation or multilateral agreements. Developing countries such as Malaysia are increasingly looking at foreign direct investment in services as an especially powerful means of transferring technical and managerial know-how, besides attracting foreign capital and investment to the country.

Malaysia has made a commitment under GATS under legal services covering advisory and consultancy services relating to home country laws, international law and offshore corporation laws of Malaysia. Under the GATS commitments, commercial presence of foreign legal firms is not available except in relation to the Federal Territory of Labuan and in such a case, their services are limited to legal services given to offshore corporations established in Labuan. However, there are no limitations placed on the provision of legal service cross-border, that is, provision of such service from a foreigner without having a legal presence in Malaysia. This may be done via fax, telephone or the Internet. As stated before, most aspects of legal services does not need the physical presence of the service provider except perhaps where a court appearance is necessary. Furthermore, a Malaysian may obtain legal services abroad without any limitation either.

Malaysia is also signatory to the ASEAN Framework Agreement on Trade in Services (AFAS). The AFAS is an agreement made within the auspices of the GATS. In very basic terms, commitments under AFAS are GATS-plus which means that liberalisation of trade is accelerated within the ASEAN region under the AFAS as compared to the world at large under GATS. Its ultimate aim is to achieve regional integration and free flow of services within the region. In achieving integration and free flow of services within the region, many issues would need to be ironed out. Issues such as harmonisation of professional standards, acceptable levels of accreditation between member countries, movement of labour in relation to provision of these services, licensing and certification of service suppliers are still under intense discussion within the Member Countries. Taking into account the different levels of economic and regulatory maturity of Member Countries within the ASEAN, it is understandable that it would be a long process of consultation before a consensus may be achieved.

LIBERALISATION OF CAPITAL ACCOUNT

A most obvious impact of globalisation of trade are pressures exerted on developing nations to liberalise their financial markets and capital accounts. However, it is important to recognise that domestic and international financial liberalisation heighten the risk of crises if not supported by prudential supervision and regulation and appropriate macroeconomic policies. Domestic liberalisation, by intensifying competition in the financial sector, removes a cushion protecting intermediaries from the consequences of bad loan and management practices. It can allow domestic financial institutions to expand risky activities at rates that far exceed their capacity to manage them. By allowing domestic financial institutions access to complex derivative instruments it can make evaluating bank balance sheets more difficult and stretch the capacity of regulators to monitor risks. External financial liberalisation in allowing foreign entry into the domestic financial markets may facilitate easy access to an abundant supply of offshore funding and risky foreign investments. A currency crisis or unexpected devaluation (such as in the Asian crisis) can undermine the solvency of banks and corporations which may have built up large liabilities denominated in foreign currency and are unprotected against foreign exchange rate changes.

The ideal free market is one that every one should be free to enter, to participate in and to leave. However, events in the recent financial crises have led many of us to believe that in the freest of markets, there is a need to ensure that free flow of capital does not destabilise the market itself.

Indeed, calls for reform have gained increasing support and credence within the international community with the unfolding of the devastating effects of the crisis beginning mid-1997. The SC’s work within IOSCO’s Emerging Markets Committee has drawn attention to fundamental weaknesses in the existing global financial infrastructure that have caused and exacerbated these effects. These weaknesses include the inordinate power of highly leveraged institutions to move markets, the destabilising force of volatile short-term capital flows and the failure of existing credit assessment systems to adequately inform market participants of increasing risk of default.

One example of this mounting consensus was the express recognition by G7 countries at their recent meeting in Cologne of the need to strengthen the international financial architecture.

There are now increasing calls for greater transparency and regulation of hedge funds and greater awareness of the dangers of volatile short-term capital flows. To rebuild East Asia and the global economy, we now urgently need to engage in a sincere discussion about what constitutes sound governance in the contemporary world.

On the domestic front, we would have to ask ourselves this question: has our financial markets kept pace with change? Whilst markets have become global, applicable rules and regulations remain predominantly parochial or local. From a regulator’s perspective, the challenge for us in a global market is to design the regulatory and structural framework which will allow the market to function efficiently, competitively in a fair and level playing field environment, ensuring at the same time that the market is not subject to highly concentrated or destabilising forces that would disrupt its functioning.

The recent crisis also shows up the need for a careful and sequenced approach towards liberalising a country’s capital account. The experiences of Thailand, Korea and Indonesia clearly tells us that there is no prescribed formula on sequencing. However, it is important to recognise that countries vary greatly in their levels of economic and financial development, in their institutional structures, in their legal systems and business practices, and their capacity to manage change in a host of areas relevant for financial liberalisation. It is in recognition of this that the IMF policy-setting committee and subsequently the Finance Ministers and central bank governors of the G7 industrial nations, in the fall of 1998, stressed that a country opening its capital account must do so in an orderly, gradual and well sequenced manner.

Issues of liberalisation versus protectionism would need to be considered at great length to ensure that a country is competitive in a global trading environment. In a developing nation such as Malaysia, a protectionist policy towards local financial services industry and industry participants have been adopted to assist the local industry to develop to international standards. In the area of financial services, for example, the Government’s stance has been that consolidation of local financial services providers is necessary to ensure the development of a core group of strong and stable financial institutions to be able to withstand international competition when the financial services markets are opened to international participants.

Indeed, the Malaysian experience clearly shows that a premature freeing up of the capital account, which was done in 1988, without the requisite reforms and institutional arrangements in order to withstand the shocks, can result in debilitating effects as was faced in the Malaysian financial services industry.

MALAYSIA’S EXPERIENCE

Perhaps the most important lesson learnt from the Asian financial crisis was the interdependence of financial markets. Even the most developed economies were not spared of the effects of the financial turmoil which began as a result of Thailand’s default on its eurobond issue in February 1997. By May, 1997, the Malaysian Ringgit was under severe pressure from currency speculators and interest rates had risen from between 7% to 9%. It was reported that Bank Negara Malaysia expended about RM1.2 billion of its foreign exchange reserves to try to stave off the attack of currency speculators. However, this was the first of many repeated attacks on the currency.

The effects of the currency crisis began to take its toll on the country in 1998. Interest rates were rising to above 11% and the Ringgit had dipped to an unprecedented low of RM4.71 in January, 1998. All sectors of the economy experienced severe contraction as access to liquidity and credit became more scarce. Bank Negara had made many attempts to quell the effects of the financial crisis through imposition of tight monetary policies and attempts to ease credit to certain sectors of the economy to no avail. But the avalanche would not stop.

Malaysia’s sovereign credit rating was downgraded by international rating agencies to just above so-called junk bond status. Malaysia was facing a serious credit squeeze. Raising international capital was prohibitively costly. Flight of capital from the country resulted in a sharp decline in the stock market which fell to levels of 250 before bottoming out in the second half of 1998.

As many of you are aware Malaysia’s response to the crisis was one that was totally unexpected by the global community. The Government decided that it needed to protect the economy from increasing global pressures on the Malaysian economy. On 1 September, 1998 the Government introduced selective exchange controls with the intention of curbing and preventing further manipulation and speculation on the Ringgit. The Ringgit was pegged at RM3.80. The Government took further measures to discourage short-term flows of money by requiring that inflow of funds should remain in the country for at least one year. On 15 February 1999, this was replaced with an exit levy for repatriation of capital. The selective exchange control measures imposed by the central bank on 1 September, 1998 were directed towards reducing the internationalisation of the Ringgit by eliminating access to Ringgit by speculators and reducing offshore trading of the Ringgit. This involved the introduction of rules relating to the external account transactions of non-residents and currency of settlement of trade transactions. However, general payments, including movement of funds relating to long-term investments and repatriation of profits, interest and dividends remain unaffected. Payment for the import of goods and services must be made in foreign currency. All export proceeds must be repatriated back to Malaysia within six months of the date of export and proceeds from exports must be received in foreign currency.

The selective exchange control regime is intended to provide the time and opportunity for the Government to institute the necessary financial reforms in the Malaysian financial markets. This is in fact in progress in the work of Danamodal (the equivalent of the Resolution Trust Corporation of the US) to alleviate non-performing loan from banks’ balance sheets and Danamodal which is to recapitalise the banks. The Government is also committed to consolidating the domestic financial services industry in having few but strong and viable financial services providers in order to be prepared for financial liberalisation.

GIVING CERTAINTY TO INTERNATIONAL FINANCIAL TRANSACTIONS AND PROTECTION TO FOREIGN INVESTMENTS

International trade and finance, because of its global nature, necessarily involves many areas which may give rise to uncertainty as to the applicability of the contract under which certain trade and financing arrangements are made. These areas range from political issues and political stability to sovereign intervention of the economy, certainty of applicable laws as well as independence of the judiciary.

The Asian lawyer will be fascinated by the rapid changes which are taking place in foreign investment law both within this region as well as in the rest of the world. In less than half a century, the states of Asia have moved through a whole range of stances which could be adopted towards foreign investment. The immediate post-colonial period was characterised by a period of hostility towards foreign investment, motivated by the belief that the ending of economic imperialism alone will bring about true independence. The ensuing period was dominated by a debate about the regulation of multinational corporations and the fear that they posed a threat to state sovereignty. In this period, laws were devised to control the entry of foreign investment and the manner in which such foreign investment operated in the host country after entry. The third and present period is a period of pragmatism where the dominant view is that foreign investment, if properly harnessed, can be an instrument which generates rapid economic development. Competition for the limited investment that is available means that each state country which is bent on a foreign investment led growth strategy must make its laws as hospitable to the foreign investor as the other state which is also bent on a similar strategy.

As much as there is competition among countries to attract foreign investment, there is competition among multinational corporations to enter host countries. Whereas previously the market was dominated by large multinationals, now, there are small and medium enterprises which can transfer more appropriate technology and bring sufficient assets for investment.

This “open door” policy towards foreign investment in developing countries is typically achieved through careful screening of entry by administrative agencies which have been established for the purpose and regulation of the process of foreign investment after entry has been made. After entry, there is continued surveillance of the foreign investment to ensure that the foreign investment keeps to the conditions upon which entry was permitted. In this regard, attitudes to foreign investment protection and dispute resolution will be affected by the new strategies adopted towards foreign investment.

In the context of the new strategies which have been developed by controlling entry and the later surveillance of operations of foreign investment, the foreign investment has ceased to be a contract based matter and had become a process initiated by a contract no doubt but controlled at every point through the public law machinery of the state. The old notions of foreign investment protection which concentrated on the making of the contract and the contract as the basis of all rights of the foreign investor would inevitably become obsolete. This transformation which has taken place is crucial to the devising of effective methods of foreign investment protection. The subject matter of the protection has also changed in that not only physical assets of the foreign investor but his intangible assets which includes intellectual property rights as well as public law rights to licences and privileges have become the subject of protection.

The proposition that contractual provisions in an agreement concluded with a host country offer little protection to foreign investment must be qualified in a situation when a bilateral investment treaty has been entered between the state of the foreign investor and the host country. The result will be different, for the contract becomes effectively internationalised as a result of the existence of such a treaty. It is a basic proposition of international law that any matter that is essentially within the domestic jurisdiction of any state could be internationalised if it is made the subject of an international treaty. The existence of a bilateral investment treaty which covers the foreign investment then internationalises the whole process of foreign investment which would otherwise have been a process that takes place entirely within the sovereign jurisdiction of the host state. But, whether this result will follow depends on the terms of the bilateral investment treaty.

As a matter of general international law, the position seem to be that a contract between a party and host country must always be subject to a national legal system. Those who seek to prove the contrary have an onerous task of showing that his accepted proposition has undergone a change. There are a few usually uncontested arbitral awards which support the view that a foreign investment contract is subject to international law or some other supranational system.

Bilateral investment treaties are obviously regarded as important by both capital exporting and capital importing states. But, these treaties are not uniform and they do not have the ability to create any uniform law on foreign investment protection. But their existence adds to investor confidence and creates an expectation of investor protection. The importance of these treaties lies in the several results they achieve. The first is a signaling function about the national policy towards foreign investment.

Another advantage is that the foreign investment contract in the context of a bilateral investment treaties could have the effect of forming assets protected by the bilateral investment treaties. This will also include licences and other advantages obtained from the government during the course of the foreign investment. Whereas without the bilateral investment treaty these licences and advantages may have been without protection under general international law, they new receive protection as a result of the wide definition of property in the bilateral investment treaty. Whether the host country did intend that its administrative decisions be subjected to international review as a result of the treaty, will remain a moot point. But, it remains a possible result if the treaty.

In Malaysia, efforts have been made by the Government to ensure a level of certainty between international trading partners trading with Malaysian counterparts. The Government has expressly guaranteed that foreign companies acquiring equity participation in local companies would not be required to restructure its equity at any time[1]. Further to this, the Government has taken many steps to increase confidence of foreign investors in Malaysia.

INVESTMENT GUARANTEE AGREEMENTS (IGA”)

The Investment Guarantee Agreement protects parties involved in an international transaction from non-commercial risks such as nationalisation and expropriation. The IGA will provide a foreign investor with the following :

• protection against nationalisation and expropriation;
• prompt and adequate compensation in the event of nationalisation or expropriation under a lawful or public purpose;
• free remittance of currency, profits, capital or other fees on investment;
• settlement of investment disputes either through a process of consultation through diplomatic channels or if such process fails, for referral to the International Court of Justice. Disputes in connection with investments, under IGAs should first be resolved through local judicial facilities. In the event of failure to settle, it would be referred to the Convention on the Settlement of Investment Disputes or the International Adhoc Arbitral Tribunal established under the Arbitration Rules of the United Nations Commission on International Trade Law.

Malaysia has concluded IGAs with about 64 trading nations including trading blocs such as ASEAN and major trading partners such as the United States of America, United Kingdom, Germany, Taiwan, etc.

TRADE DISPUTE SETTLEMENT

Another aspect of international trade is the availability of acceptable dispute resolution form. Globalisation of trade obviously involves greater potential for generating international trade disputes. The international business community looks for prompt, economical and fair conflict-resolution mechanisms. Negotiation, conciliation, litigation, and arbitration are well-known conflict-resolution devices. Direct negotiations and conciliation may resolve a conflict. However, when parties fail to solve the controversy through direct negotiations, they have two choices: litigation or arbitration.

Within the context of the GATS, there is an express provision for trade settlement dispute where countries have disputes in relation to commitments made under the agreement. The WTO have provided for procedures in relation to a dispute settlement process. The dispute settlement procedure is considered to be the WTO’s most individual contribution to the stability of the global economy. The WTO’s procedure underscores the rule of law, and it makes the trading system more secure and predictable. It is clearly structured, with flexible timetables set for completing a case. First rulings are made by a panel, appeals based on points of law are possible and all final rulings or decisions are made by the WTO’s full membership. No single country can block a decision.

Malaysia is also signatory to the Convention on the Settlement of Investment Disputes established under the auspices of the International Bank for Reconstruction and Development that establishes facilities for international conciliation or arbitration. Further to this, the Kuala Lumpur Regional Centre for Arbitration was established in 1978 with the objective of providing a system for the settlement of disputes for the benefit of parties engaged in trade, commerce and investments with and within the Asian and Pacific region.

In conclusion, as we draw close to the new millennium, it is indeed a challenge to us all to be able to grapple with some of the abovementioned issues and adopt appropriate responses.