Pertiwi Suriamas Sdn Bhd 1. ) JL BOOST SDN BHD 2. ) LOO CHAN YUE 3. ) RINA PANG MAY LI

Pertiwi Suriamas Sdn Bhd 1. ) JL BOOST SDN BHD 2. ) LOO CHAN YUE 3. ) RINA PANG MAY LI

The Court found on the evidence that the 1st Respondent (JL Boost Sdn. Bhd.) owed RM24,013.88 to the Appellant and ordered payment of that sum, but the Appellant failed to prove that the 2nd and 3rd Respondents committed fraud or carried on the company's business with intent to defraud creditors as required by s540 Companies Act 2016; accordingly the corporate veil was not lifted and the claim against the directors was dismissed.

Citation
WA-12BNCvC-105-08/2023 (Mahkamah Tinggi)
Parties
Appellant / Plaintiff: Pertiwi Suriamas Sdn. Bhd.; 1st Respondent / 1st Defendant: JL Boost Sdn. Bhd.; 2nd Respondent / 2nd Defendant: Loo Chan Yue; 3rd Respondent / 3rd Defendant: Rina Pang May Li
Court
High Court
Jurisdiction
Malaysia
Judgment Date
27 March 2024
Case Number
WA-12BNCvC-105-08/2023 (Mahkamah Tinggi)
Procedural Posture
Civil Appeal / Appellate Judgment
Outcome
Appeal allowed in part; 1st Respondent ordered to pay RM24,013.88 to Appellant; application to lift/pierce corporate veil against 2nd and 3rd Respondents dismissed.
Legal Topics
Lifting Corporate Veil, Fraudulent Trading, Debt Recovery, Director Liability
Source Language
Malay/English
Company Law Contract Law Civil Procedure Lifting Corporate Veil Fraudulent Trading Debt Recovery Director Liability

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Parties

Pertiwi Suriamas Sdn. Bhd.

Appellant / Plaintiff

JL Boost Sdn. Bhd.

1st Respondent / 1st Defendant

Loo Chan Yue

2nd Respondent / 2nd Defendant

Rina Pang May Li

3rd Respondent / 3rd Defendant

Procedural Posture

Civil Appeal / Appellate Judgment

Legal Issues

  1. 1 Whether the 1st Respondent owes the outstanding sum to the Appellant
  2. 2 Whether the corporate veil of the 1st Respondent should be lifted to hold the 2nd and 3rd Respondents personally liable under section 540 Companies Act 2016

Ratio Decidendi

The Court found on the evidence that the 1st Respondent (JL Boost Sdn. Bhd.) owed RM24,013.88 to the Appellant and ordered payment of that sum, but the Appellant failed to prove that the 2nd and 3rd Respondents committed fraud or carried on the company's business with intent to defraud creditors as required by s540 Companies Act 2016; accordingly the corporate veil was not lifted and the claim against the directors was dismissed.

Court Disposition

Appeal allowed in part; 1st Respondent ordered to pay RM24,013.88 to Appellant; application to lift/pierce corporate veil against 2nd and 3rd Respondents dismissed.

Orders

  • 1st Respondent (JL Boost Sdn. Bhd.) to pay RM24,013.88 to Pertiwi Suriamas Sdn. Bhd.
  • Application for declaration lifting or piercing the corporate veil to hold the 2nd and 3rd Respondents personally liable is dismissed