IRIS CORPORATION BHD 1. ) TAN SRI RAZALI BIN ISMAIL 2. ) DATUK TAN SAY JIM 3. ) Yam Tunku Dato Seri Shahbuddin Bin Tunku Besar Burhanuddin 4. ) DATO HAMDAN BIN MOHD HASSAN 5. ) DATO EOW KWAN HOONG 6. ) CHAN FEOI CHUN 7. ) SYED ABDULLAH BIN

IRIS CORPORATION BHD 1. ) TAN SRI RAZALI BIN ISMAIL 2. ) DATUK TAN SAY JIM 3. ) Yam Tunku Dato Seri Shahbuddin Bin Tunku Besar Burhanuddin 4. ) DATO HAMDAN BIN MOHD HASSAN 5. ) DATO EOW KWAN HOONG 6. ) CHAN FEOI CHUN 7. ) SYED ABDULLAH BIN

The appeal is dismissed because the respondents satisfied the cumulative statutory business judgment rule requirements under s214 CA 2016 and properly made an independent assessment under s215 having regard to their prior knowledge and the circumstances; the High Court correctly preferred the contemporaneous FH report over the incomplete, hindsight-driven EY investigation; procedural rules precluded default judgment against the 8th respondent; alternatively s581 relief would justify excusing liability.

Citation
W-02(NCC)(W)-1736-09/2022 (Mahkamah Rayuan)
Parties
Appellant: Iris Corporation Bhd; 1st Respondent: Tan Sri Razali bin Ismail; 2nd Respondent: Datuk Tan Say Jim; 3rd Respondent: Yam Tuanku Dato' Seri Shahbuddin bin Tunku Besar Burhanuddin; 4th Respondent: Dato' Hamdan bin Mohd Hassan; 5th Respondent: Dato' Eow Kwan Hoong; 6th Respondent: Chan Feoi Chun; 7th Respondent: Syed Abdullah bin Syed Abd Kadir; 8th Respondent: Datuk Noor Ehsanuddin bin Mohd Harun Narrashid; 9th Respondent: Datuk Nik Azman bin Mohd Zain
Court
NCC
Jurisdiction
Malaysia
Judgment Date
13 August 2025
Case Number
W-02(NCC)(W)-1736-09/2022 (Mahkamah Rayuan)
Procedural Posture
Civil Appeal (company/directors) / Judgment on Appeal (dismissed)
Outcome
Appeal dismissed; High Court decision affirmed
Legal Topics
Business Judgment Rule, Directors' Duties (fiduciary Duty, Care and Skill), Reliance on Management/independent Assessment (s215 CA 2016), Relief From Liability (s581 CA 2016), Adverse Inference for Non Production of Witness, Expert Evidence Evaluation
Source Language
Malay/English
Company Law Corporate Governance Civil Procedure Evidence Business Judgment Rule Directors' Duties (fiduciary Duty, Care and Skill) Reliance on Management/independent Assessment (s215 CA 2016) Relief From Liability (s581 CA 2016) +2 more

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Parties

Iris Corporation Bhd

Appellant

Tan Sri Razali bin Ismail

1st Respondent

Datuk Tan Say Jim

2nd Respondent

Yam Tuanku Dato' Seri Shahbuddin bin Tunku Besar Burhanuddin

3rd Respondent

Dato' Hamdan bin Mohd Hassan

4th Respondent

Dato' Eow Kwan Hoong

5th Respondent

Chan Feoi Chun

6th Respondent

Syed Abdullah bin Syed Abd Kadir

7th Respondent

Datuk Noor Ehsanuddin bin Mohd Harun Narrashid

8th Respondent

Datuk Nik Azman bin Mohd Zain

9th Respondent

Procedural Posture

Civil Appeal (company/directors) / Judgment on Appeal (dismissed)

Legal Issues

  1. 1 Whether the directors breached fiduciary duties and duties of care in approving the BCS investment
  2. 2 Whether the business judgment rule (s214 CA 2016) protects the respondents' decision
  3. 3 Whether respondents made an independent assessment as required by s215 CA 2016

Ratio Decidendi

The appeal is dismissed because the respondents satisfied the cumulative statutory business judgment rule requirements under s214 CA 2016 and properly made an independent assessment under s215 having regard to their prior knowledge and the circumstances; the High Court correctly preferred the contemporaneous FH report over the incomplete, hindsight-driven EY investigation; procedural rules precluded default judgment against the 8th respondent; alternatively s581 relief would justify excusing liability.

Court Disposition

Appeal dismissed; High Court decision affirmed

Orders

  • Appeal dismissed with costs