1. TAN CHONG WEE (sebagai Wasi dan Pemegang Amanah bagi Harta Pusaka Tan Kim Hai @ Tan Chong Cheng, Si Mati) 2. TAN CHONG JEN (sebagai Wasi dan Pemegang Amanah bagi Harta Pusaka Tan Kim Hai @ Tan Chong Cheng, Si Mati) 3. BALA KRISHNAN A/L P

1. TAN CHONG WEE (sebagai Wasi dan Pemegang Amanah bagi Harta Pusaka Tan Kim Hai @ Tan Chong Cheng, Si Mati) 2. TAN CHONG JEN (sebagai Wasi dan Pemegang Amanah bagi Harta Pusaka Tan Kim Hai @ Tan Chong Cheng, Si Mati) 3. BALA KRISHNAN A/L P

The court held that where a will expressly requires 'consensus' of all executors, co-executors cannot act by majority; accordingly the Plaintiffs lacked locus standi to commence the suit without unanimous executor consent and the Executors' Code of Conduct purporting to allow majority decisions is void and invalid; however the appointment of the 2nd Defendant as director was valid under Companies Act 2016 s202(3); the Originating Summons was dismissed with costs to the defendants.

Citation
JA-24NCC-32-2/2020 (Mahkamah Tinggi)
Parties
Plaintiff (executor and Trustee): TAN CHONG WEE; Plaintiff (executor and Trustee): TAN CHONG JEN; Plaintiff (executor and Trustee): BALA KRISHNAN A/L PONNIAH; Defendant (individual and Executor/trustee): TAN KIM SUANG @ CHEN TZONG SHII; Defendant: TAN HAN SENG; Defendant: CHAI SIOW CHEN; Defendant: SEOW GEK HONG; Defendant (company): CLAY INDUSTRIES SDN. BERHAD
Court
High Court
Jurisdiction
Malaysia
Judgment Date
1 December 2021
Case Number
JA-24NCC-32-2/2020 (Mahkamah Tinggi)
Procedural Posture
Originating Summons (probate/company Disputes) / Judgment on Originating Summons
Outcome
Originating Summons dismissed
Legal Topics
Executor Locus Standi, Consensus Requirement Among Trustees, Validity of Trustees' Code of Conduct, Appointment of Company Directors, Requisition Meetings, Orders Against Company Officers
Source Language
Malay/English
Trusts and Probate Company Law Civil Procedure Executor Locus Standi Consensus Requirement Among Trustees Validity of Trustees' Code of Conduct Appointment of Company Directors Requisition Meetings +1 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 4 Authorities cited 10 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Parties

TAN CHONG WEE

Plaintiff (executor and Trustee)

TAN CHONG JEN

Plaintiff (executor and Trustee)

BALA KRISHNAN A/L PONNIAH

Plaintiff (executor and Trustee)

TAN KIM SUANG @ CHEN TZONG SHII

Defendant (individual and Executor/trustee)

TAN HAN SENG

Defendant

CHAI SIOW CHEN

Defendant

SEOW GEK HONG

Defendant

CLAY INDUSTRIES SDN. BERHAD

Defendant (company)

Procedural Posture

Originating Summons (probate/company Disputes) / Judgment on Originating Summons

Legal Issues

  1. 1 Whether executors may act by majority where the will requires 'consensus'
  2. 2 Whether the Executors' Code of Conduct permitting majority decisions is valid against the will
  3. 3 Whether Plaintiffs without unanimous executor consent have locus standi to sue

Ratio Decidendi

The court held that where a will expressly requires 'consensus' of all executors, co-executors cannot act by majority; accordingly the Plaintiffs lacked locus standi to commence the suit without unanimous executor consent and the Executors' Code of Conduct purporting to allow majority decisions is void and invalid; however the appointment of the 2nd Defendant as director was valid under Companies Act 2016 s202(3); the Originating Summons was dismissed with costs to the defendants.

Court Disposition

Originating Summons dismissed

Orders

  • Originating Summons dismissed
  • Executors' Code of Conduct declared void and invalid insofar as it purports to override the Last Will and Testament