Malaysia Case Law: Decisions & Judgments | LexChat

Malaysia Case Law

Loan vs capital contribution
  • 7 May 2025

    ADEMCO SECURITY GROUP PTE. LTD. XECURETRONIX SDN. BHD.

    Citation
    WA-22NCC-269-04/2024 (Mahkamah Tinggi)
    Court
    High Court
    Case number
    WA-22NCC-269-04/2024 (Mahkamah Tinggi)

    On the balance of probabilities the Court found the advances were loans (not capital) repayable on demand; the company was not a party to the shareholders' agreement but contemporaneous documents and correspondence show the advances were loans subject to repayment and 8% p.a. interest; only RM190,547 was allowed as deduction for CMS equipment; Defendant owes RM1,648,453 plus 8% p.a. from 24-11-2020 until full realization and costs of RM20,000.