Malaysia Case Law: Decisions & Judgments | LexChat

Malaysia Case Law

Fraudulent trading (s304 ca 1965 / s540 ca 2016)
  • 8 Jul 2020

    TETUAN SULAIMAN & TAYE 1. WONG POH KUN 2. WONG POH LUM

    Citation
    WA-22NCC-364-08/2018 (Mahkamah Tinggi)
    Court
    High Court
    Case number
    WA-22NCC-364-08/2018 (Mahkamah Tinggi)

    On the balance of probabilities the court inferred that directors WPK and WPL, as mandatory signatories, knowingly permitted dissipation of RM71,310,616.46 received from sale proceeds and could not account for same; the court drew an adverse inference from their failure to produce explanations or documents and concluded they carried on the company’s business with intent to defraud creditors; accordingly both defendants were declared jointly and severally personally liable and ordered to contribute to the company’s assets via the liquidator.

    • Fraudulent trading (s304 ca 1965 / s540 ca 2016)
    • Directors' personal liability
    • Adverse inference for non-production of documents
    • Distribution of recoveries in liquidation (pari passu v. payment to creditor)