One of the available recovery options is through taking legal action against the Issuers who have defaulted. This is when legal fees will be incurred and deducted from the investor's account accordingly.
How to calculate your portion of the legal fee?
The total legal fees for each case generally range from RM 5,000 to RM 30,000*, depending on the complexity of the case and the response from the defendant**.
Your portion of the legal fee is calculated based on the amount you have invested in that particular note.
Please find below an illustration of the legal fees payable by each investor (based on the investment amount):
Calculation of Payable Legal Fees
* The legal fees may be higher for more complex cases and where the matter proceeds to trial. Further, this does not include legal fees in respect of applications and/or appeals made by the note issuer/guarantor which we may have to respond to.
** Defendants may file multiple interlocutory applications and/or appeals which increases legal effort and cost whilst others may agree to settle in the midst of the proceedings.
When will the deduction take place?
We will be posting an update in the “Payment Note” portion upon deduction.