KUALA LUMPUR — The High Court here has ordered the winding-up of the Business Ethics Institute of Malaysia (BEIM), a non-profit organisation dedicated to promoting ethical commerce practices, after it failed to settle debts exceeding RM90,000.
The order, delivered by Judge Jamhirah Ali on October 9, followed a winding-up petition filed in early August by Paradise Worldwide Sdn Bhd, the owner of Wisma Paradise in Kuala Lumpur, where BEIM had leased an office space.
According to court filings, BEIM failed to pay RM70,020 in rental arrears, accrued interest, and legal costs owed to Paradise Worldwide, despite a judgment obtained by the landlord at the Kuala Lumpur Magistrates’ Court in May 2024.
Following that ruling, BEIM appealed to the High Court, contending that there was no intention to create legal relations between the parties and that the tenancy was informal or social in nature, as BEIM’s treasurer also held a position in Paradise Worldwide.
BEIM further argued that the arrangement did not amount to a binding contractual tenancy.
In its December 2024 judgment, the High Court rejected BEIM’s arguments, ruling that a valid written tenancy agreement existed and that BEIM’s own correspondence acknowledging the arrears constituted a legally binding obligation.
With the appeal dismissed, BEIM was ordered to pay RM10,000 in costs to Paradise Worldwide.
The total sum owed, including accrued interest and other costs, rose to RM92,808.77 as of May 2025.
Following BEIM’s failure to comply with a statutory demand to pay the judgment sum, Paradise Worldwide filed a winding-up petition in August, citing the institute’s inability to pay its debts.
The petitioner was represented by lawyers Loganathean Manickam and Arjun Mohanakrishnan in the winding-up proceedings.
Founded in 1997 as a company limited by guarantee, BEIM positioned itself as a proponent of corporate integrity and consumer education, aiming to “foster an ethical marketplace” across Malaysia’s business landscape. — October 19, 2025
The post Business Ethics Institute of Malaysia wound-up after failing to pay over RM90k debt appeared first on Scoop.