Malaysia Case Law: Decisions & Judgments

Topic

Mismanagement

Legal area

Court

11 Jul 2024

NIK NOR ADILA BINTI SABIAMAD 1. ) BINSABI SDN BHD 2. ) BSB GENERATION SDN BHD 3. ) HISA EMPIRE SDN BHD 4. ) NIK NOR AZIEMAH BINTI SABIAMAD 5. ) NIK MOHD HAIRI ISKANDAR BIN SABIAMAD 6. ) NIK NOR BAIZURA BINTI SABIAMAD 7. ) NIK NOR HAFEZAH BI

Citation

BA-24NCC-4-01/2023 (Mahkamah Tinggi)
Court

High Court
Case number

BA-24NCC-4-01/2023 (Mahkamah Tinggi)

The High Court found the applicant to be honest and credible, that there was prima facie evidence of excessive and mala fide conduct by some directors amounting to mismanagement; the statutory criteria for leave under ss 347-348 were satisfied (good faith and prima facie benefit to the company) and therefore leave to commence derivative proceedings was granted and an interlocutory injunction restraining respondents from withdrawing from specified company bank accounts was justified; the applicant was authorized to control and conduct the proceedings on behalf of the company and the company wa…
19 Sept 2023

1. ) MERGE JATI ENGINEERING SDN BHD 2. ) HOW KEN KON @ LOW KEN KON 1. ) KANG JIT SING 2. ) NG MUI KOON 3. ) KANG KOK WEE, KELVIN 4. ) KANG KOK YONG, JASON 5. ) TONGOD OIL PALM SDN BHD 6. ) PINANGAH OIL PALM SDN BHD 7. ) WEST BORNEO RESOURCE

Citation

JA-24NCC-35-12/2022 (Mahkamah Tinggi)
Court

High Court
Case number

JA-24NCC-35-12/2022 (Mahkamah Tinggi)

The court found on the facts that the majority's conduct — including delegating negotiations without shown board authority, dismissing minority queries, opening accounts and diverting funds without minority knowledge, and effecting a dilution of WBS's control in PT SMS — amounted to oppression under s.346 Companies Act 2016; accordingly the minorities are entitled to a court-ordered buy-out by majority shareholders (with court-approved independent valuation and specified transfer mechanisms), and a conditional alternative winding-up remedy if the buy-out orders are not complied with; the decl…
15 Feb 2023

SNR TYRE & SERVICES SDN. BHD. MOHAMAD HALIF BIN SADON

Citation

BA-22NCvC-63-02/2022 (Mahkamah Tinggi)
Court

High Court
Case number

BA-22NCvC-63-02/2022 (Mahkamah Tinggi)

On the balance of probabilities Plaintiff failed to prove that Defendant unlawfully withdrew or misappropriated RM1,408,126.04 or otherwise committed deceit or mismanagement; Defendant's explanations and documentary evidence were credible for the disputed transfers, audit findings were not proven to be caused by Defendant alone (and audit findings regarding other companies were irrelevant), and Plaintiff therefore failed its evidential burden; accordingly Plaintiff's substantive claims and Defendant's counterclaim were dismissed, but the limited order to return Plaintiff's documents and asset…
18 May 2021

Tan Han Kwan & 2 Lagi KSCH Property Sdn Bhd & 4 Lagi

Citation

WA-24NCC-425-09/2020 (Mahkamah Tinggi)
Court

High Court
Case number

WA-24NCC-425-09/2020 (Mahkamah Tinggi)

On the balance of probabilities the court was satisfied the plaintiffs honestly believed a good cause of action existed and that the complaints were not manifestly ill-founded; there was a reasonable basis to infer potential breaches (related party rental, unexplained payments, possible secret profits) and the wrongdoers controlled the company and were unwilling to act, therefore leave under s.348(4) CA 2016 was granted as the proposed derivative action was prima facie in the best interests of the company.

Malaysia Case Law

NIK NOR ADILA BINTI SABIAMAD 1. ) BINSABI SDN BHD 2. ) BSB GENERATION SDN BHD 3. ) HISA EMPIRE SDN BHD 4. ) NIK NOR AZIEMAH BINTI SABIAMAD 5. ) NIK MOHD HAIRI ISKANDAR BIN SABIAMAD 6. ) NIK NOR BAIZURA BINTI SABIAMAD 7. ) NIK NOR HAFEZAH BI

1. ) MERGE JATI ENGINEERING SDN BHD 2. ) HOW KEN KON @ LOW KEN KON 1. ) KANG JIT SING 2. ) NG MUI KOON 3. ) KANG KOK WEE, KELVIN 4. ) KANG KOK YONG, JASON 5. ) TONGOD OIL PALM SDN BHD 6. ) PINANGAH OIL PALM SDN BHD 7. ) WEST BORNEO RESOURCE

SNR TYRE & SERVICES SDN. BHD. MOHAMAD HALIF BIN SADON

Tan Han Kwan & 2 Lagi KSCH Property Sdn Bhd & 4 Lagi