Malaysia Case Law: Decisions & Judgments

Topic

Cross‑shareholding

Legal area

Court

27 Aug 2024

SING LIAN SDN. BHD. (DALAM LIKUIDASI) (SELAKU PENYUMBANG SIN HAI ESTATE BERHAD) Sin Hai Estate Berhad (In Liquidation) PIHAK TERKILAN Tey Boon Giow & Sons Sdn Bhd

Citation

NA-28PW-23-05/2024 (Mahkamah Tinggi)
Court

High Court
Case number

NA-28PW-23-05/2024 (Mahkamah Tinggi)

Releasing the Sin Hai entitlement to Sin Hai's liquidator would cause circular distributions between Sin Hai and Sing Lian and would incur substantial additional liquidator fees to the prejudice of contributories; distribution directly by Sing Lian to the relevant contributories is consistent with prior court orders implementing a distribution in specie, avoids circularity and unnecessary fees, and therefore the Court allowed Sing Lian's Notice of Motion and awarded costs against Sin Hai.
27 Aug 2024

Sin Hai Estate Berhad (In Liquidation) 1. ) SING LIAN SDN. BHD. (DALAM LIKUIDASI) (SELAKU PENYUMBANG SIN HAI ESTATE BERHAD) 2. ) TEY SUI KIAT 3. ) TEY BOON GIOW & SONS SDN BHD 4. ) LIM JIT TENG @ LIM TIN TENG 5. ) LIM JIT JIM @ LIM TIAN JEE

Citation

NA-28PW-21-12/2021 (Mahkamah Tinggi)
Court

High Court
Case number

NA-28PW-21-12/2021 (Mahkamah Tinggi)

The Sin Hai entitlement is not a debt or asset of Sin Hai but a surplus asset distribution; releasing it to Sin Hai would create circular distributions contrary to the prior distribution in specie orders and would increase liquidator fees to the prejudice of contributories; therefore the application for release is dismissed.
12 May 2020

SIN HAI ESTATE BHD ; LIM JIT KIM @ LIM TIAN JEE & 18 OTHERS SING LIAN SDN BHD ; GOH SIEW KOON @ ENG SING KUAN & 3 OTHERS

Citation

WA-28PW-499-11/2018 (Mahkamah Tinggi)
Court

High Court
Case number

WA-28PW-499-11/2018 (Mahkamah Tinggi)

Enc.380 (liquidator's cash distribution) was dismissed and Enc.1 (distribution in specie of Sing Lian shares to Sin Hai contributories) was allowed because: (a) res judicata did not apply as the earlier dismissal was for an incomplete proposal and did not decide the substantive issue; (b) a distribution in specie in a solvent winding up does not amount to prohibited financial assistance under s.67(1) nor is it necessarily void under s.223/s.233 where the winding‑up courts sanction the transfers; (c) contributories' wishes (majority by value) are material and must be given regard by the liquid…
28 Feb 2020

LIM JIT KIM @ LIM TIAN JEE TAN YIAN PING GOH SIEW KOON @ ENG SING KUAN TEY LIONG SENG

Citation

WA-28PW-499-11/2018 (Mahkamah Tinggi)
Court

High Court
Case number

WA-28PW-499-11/2018 (Mahkamah Tinggi)

Enc.380 (liquidator's cash distribution proposal) is dismissed because it fails to resolve cross‑shareholdings, perpetuates circular distributions and escalating costs, and the withdrawn NCD meant the cash proposal was inadequately particularized; Enc.1 (distribution in specie of Sing Lian shares held by Sin Hai) is allowed because res judicata did not apply to the later complete proposal, a distribution in specie in a solvent winding up is permissible and does not constitute prohibited financial assistance under s67(1) nor necessarily contravene s223/233 provided appropriate court sanction i…

Malaysia Case Law

SING LIAN SDN. BHD. (DALAM LIKUIDASI) (SELAKU PENYUMBANG SIN HAI ESTATE BERHAD) Sin Hai Estate Berhad (In Liquidation) PIHAK TERKILAN Tey Boon Giow & Sons Sdn Bhd

Sin Hai Estate Berhad (In Liquidation) 1. ) SING LIAN SDN. BHD. (DALAM LIKUIDASI) (SELAKU PENYUMBANG SIN HAI ESTATE BERHAD) 2. ) TEY SUI KIAT 3. ) TEY BOON GIOW & SONS SDN BHD 4. ) LIM JIT TENG @ LIM TIN TENG 5. ) LIM JIT JIM @ LIM TIAN JEE

SIN HAI ESTATE BHD ; LIM JIT KIM @ LIM TIAN JEE & 18 OTHERS SING LIAN SDN BHD ; GOH SIEW KOON @ ENG SING KUAN & 3 OTHERS

LIM JIT KIM @ LIM TIAN JEE TAN YIAN PING GOH SIEW KOON @ ENG SING KUAN TEY LIONG SENG