Malaysia Case Law: Decisions & Judgments

Topic

Rule against reflective loss

Legal area

Court

28 Aug 2024

1. ) LOW CHENG TEIK 2. ) LOW HOCK BOON 3. ) LAW SEE YOONG 4. ) SNE MARKETING SDN BHD LOW EAN NEE

Citation

02(f)-30-04/2023(W) (Mahkamah Persekutuan)
Court

f
Case number

02(f)-30-04/2023(W) (Mahkamah Persekutuan)

The Federal Court held the assignment of the company trademarks was a wrong done to the company, not a distinct personal injury to the respondent as shareholder; therefore the cause of action vested in the company and the complaint should have been pursued as a statutory derivative action under s347. The Court formulated a multi-step test to distinguish oppression (s346) from derivative claims and reversed the Court of Appeal’s finding of oppression.
2 Dec 2022

1. ) RODA BERLIAN (M) SDN. BHD. 2. ) TAN SAY KENG 3. ) TAN TENG TENG 4. ) OH TEIK GEE 5. ) BOEY CHOOI YIN 1. ) LIM TITT HUAT 2. ) LIM WOOI BOO 3. ) MAUNG LIM AUTO PARTS SDN. BHD. 4. ) PRENSAS SCHULER SDN. BHD. 5. ) WHAI CHENG AUTO PARTS SDN

Citation

WA-22NCC-393-08/2020 (Mahkamah Tinggi)
Court

High Court
Case number

WA-22NCC-393-08/2020 (Mahkamah Tinggi)

Majority of plaintiffs' claims dismissed because they constituted corporate wrongs for which the company, not individual shareholders or directors, is the proper plaintiff and plaintiffs had not obtained mandatory leave under s.347 Companies Act 2016; claims for diminution in share value were barred by the rule against reflective loss; conspiracy and fraud claims failed for lack of particularity and proof; limited restitution succeeded where Roda Berlian proved on balance that RM44,321 was misappropriated by D1, warranting compensatory and exemplary awards and interest.

Malaysia Case Law

1. ) LOW CHENG TEIK 2. ) LOW HOCK BOON 3. ) LAW SEE YOONG 4. ) SNE MARKETING SDN BHD LOW EAN NEE

1. ) RODA BERLIAN (M) SDN. BHD. 2. ) TAN SAY KENG 3. ) TAN TENG TENG 4. ) OH TEIK GEE 5. ) BOEY CHOOI YIN 1. ) LIM TITT HUAT 2. ) LIM WOOI BOO 3. ) MAUNG LIM AUTO PARTS SDN. BHD. 4. ) PRENSAS SCHULER SDN. BHD. 5. ) WHAI CHENG AUTO PARTS SDN