1. ) ILLUMINET SDN. BHD. 2. ) Zaaim Redha Bin Abdul Rahman 3. ) HARLINA BINTI SUPARJO (mendakwa sebagai pemegang saham majoriti Illuminet Sdn Bhd dan membawa tindakan ini untuk kepentingan Illuminet Sdn Bhd) AZHARUDDIN BIN ALIAS

1. ) ILLUMINET SDN. BHD. 2. ) Zaaim Redha Bin Abdul Rahman 3. ) HARLINA BINTI SUPARJO (mendakwa sebagai pemegang saham majoriti Illuminet Sdn Bhd dan membawa tindakan ini untuk kepentingan Illuminet Sdn Bhd) AZHARUDDIN BIN ALIAS

On the balance of probabilities the High Court found that the Defendant, as CEO and director, breached fiduciary duties and wrongfully caused the misappropriation of company funds amounting to RM341,242; Plaintiffs' documentary and oral evidence was preferred; accordingly the court recorded the amount against the Defendant, granted declaratory and injunctive reliefs to protect company assets and bank controls, and awarded costs of RM15,000 while refusing certain claimed reliefs (interest and certain return-of-property and exemplary damages).

Citation
BA-22NCC-6-01/2022 (Mahkamah Tinggi)
Parties
Plaintiff (plaintif Pertama): Illuminet Sdn. Bhd.; Plaintiff (plaintif Kedua): Zaaim Redha bin Abdul Rahman; Plaintiff (plaintif Ketiga): Harlina binti Suparjo; Defendant: Azharuddin bin Alias
Court
High Court
Jurisdiction
Malaysia
Judgment Date
23 December 2022
Case Number
BA-22NCC-6-01/2022 (Mahkamah Tinggi)
Procedural Posture
Civil Claim for Breach of Fiduciary Duty and Breach of Trust (company Dispute) / High Court Judgment at Trial (judgment Delivered)
Outcome
Judgment for Plaintiffs on liability. RM341,242 recorded against Defendant. Declaratory and injunctive reliefs granted to restrict Defendant's control over company bank accounts and to effect bank signatory changes; some prayers refused. Costs awarded to Plaintiffs RM15,000. Defendant filed appeal.
Legal Topics
Breach of Fiduciary Duty, Breach of Trust (pecah Amanah), Directors' Duties, Injunctive Relief, Accounting and Recovery of Misappropriated Funds
Source Language
Malay/English
Company Law Equity and Fiduciary Duties Civil Procedure Banking Law Remedies (injunctions, Damages) Breach of Fiduciary Duty Breach of Trust (pecah Amanah) Directors' Duties +2 more

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Parties

Illuminet Sdn. Bhd.

Plaintiff (plaintif Pertama)

Zaaim Redha bin Abdul Rahman

Plaintiff (plaintif Kedua)

Harlina binti Suparjo

Plaintiff (plaintif Ketiga)

Azharuddin bin Alias

Defendant

Procedural Posture

Civil Claim for Breach of Fiduciary Duty and Breach of Trust (company Dispute) / High Court Judgment at Trial (judgment Delivered)

Legal Issues

  1. 1 Whether Defendant breached fiduciary duties and misappropriated company funds
  2. 2 Whether Defendant owes Plaintiffs RM341,242 as misappropriated funds
  3. 3 Whether partial repayments were made and effect on liability

Ratio Decidendi

On the balance of probabilities the High Court found that the Defendant, as CEO and director, breached fiduciary duties and wrongfully caused the misappropriation of company funds amounting to RM341,242; Plaintiffs' documentary and oral evidence was preferred; accordingly the court recorded the amount against the Defendant, granted declaratory and injunctive reliefs to protect company assets and bank controls, and awarded costs of RM15,000 while refusing certain claimed reliefs (interest and certain return-of-property and exemplary damages).

Court Disposition

Judgment for Plaintiffs on liability. RM341,242 recorded against Defendant. Declaratory and injunctive reliefs granted to restrict Defendant's control over company bank accounts and to effect bank signatory changes; some prayers refused. Costs awarded to Plaintiffs RM15,000. Defendant filed appeal.

Orders

  • Declaration that Defendant ceased to be CEO of Illuminet Sdn. Bhd. effective 30-11-2021
  • Sum of RM341,242.00 recorded against Defendant