Malaysia Case Law: Decisions & Judgments | LexChat

Topic

Breach of directors' fiduciary duties

Legal area

Court

27 Jul 2023

TIONG JOO TRADING SDN. BHD. 1. ) Lee Shaw Chin @ Lee Kim Leng 2. ) Woo Yoke Keng 3. ) Lee Wee Leng 4. ) Tiong Joo Enterprise Sdn. Bhd.

Citation

M-02(NCvC)(W)-874-05/2022 (Mahkamah Rayuan)
Court

NCvC
Case number

M-02(NCvC)(W)-874-05/2022 (Mahkamah Rayuan)

The Court held the RM2,000,000 uplift was unauthorised, illegal and void; D1, D2 and D3 failed to show the withdrawal was for a legitimate purpose and breached their duties, therefore they must jointly and severally refund RM2,000,000 to the plaintiff; the trial judge's contrary finding was set aside and costs were awarded to the plaintiff.
21 May 2020

LOW YEE MENG 1. LAU KOK LOON @ LAU SAY SIOK (NO. K/P: 430804-10-5423) 2. LAU TEIN KANG (NO. K/P: 780319-14-6045) 3. SEMENYIH JAYA SDN BHD (NO SYARIKAT: 106778-U)

Citation

WA-24NCC-175-04/2019 (Mahkamah Tinggi)
Court

High Court
Case number

WA-24NCC-175-04/2019 (Mahkamah Tinggi)

The court found on the balance of probabilities that the plaintiff acted in good faith and that the proposed derivative claim was prima facie in the best interest of the Company because Defendant 1 failed to provide any adequate accounting for withdrawals of approximately RM10.6 million, the plaintiff had locus standi as a director and shareholder and had complied with s.348(2), and there was no cogent evidence of a collateral motive; consequently leave under ss.347 and 348 Companies Act 2016 was granted in terms of prayers (a)-(e).