Malaysia Case Law: Decisions & Judgments

Topic

Leave to commence derivative proceedings

Legal area

Court

26 Feb 2026

Dato' Seri Timor Shah Rafiq Nautilus Tug & Towage Sdn. Bhd. PENCELAH AZIMUTH SHIP MANAGEMENT SDN BHD

Citation

WA-24NCC-677-12/2023 (Mahkamah Tinggi)
Court

High Court
Case number

WA-24NCC-677-12/2023 (Mahkamah Tinggi)

A person who qualified as a "complainant" by virtue of being a director at the date of a statutory derivative leave application under Companies Act 2016 retains standing to pursue that application even if he ceases to be a director before the proceedings conclude; standing is assessed at the time of filing and loss of capacity thereafter does not automatically oust the court's jurisdiction to grant leave.
30 May 2025

PANG SUI JIN CELLPRO CONSULTANCY SDN BHD

Citation

WA-24NCC-581-12/2024 (Mahkamah Tinggi)
Court

High Court
Case number

WA-24NCC-581-12/2024 (Mahkamah Tinggi)

Applicant, a 20% shareholder, complied with s348 notice requirements and presented documentary evidence establishing good faith and a prima facie cause of action with reasonable prospects of success; it is prima facie in the company's best interests to grant leave to pursue derivative proceedings against the Proposed Defendants; merits to be determined in substantive proceedings.
15 Jun 2023

1. ) DATO' SRI TEE YAM 2. ) DATO' JP, LOW KOK CHUAN 3. ) LEOW BOON KIN 4. ) ZHANG JIA 5. ) WONG SIAW PUIE CLASSITA HOLDINGS BERHAD (DAHULUNYA DIKENALI SEBAGAI CAELY HOLDINGS BERHAD)

Citation

WA-24NCC-136-03/2023 (Mahkamah Tinggi)
Court

High Court
Case number

WA-24NCC-136-03/2023 (Mahkamah Tinggi)

Dismissal because the company had already instituted Suit 133 to pursue the same claims, the plaintiffs failed to demonstrate bona fide concerns or evidence that the company's solicitors had acted contrary to the company's interests, and the application appeared to be a collateral/backdoor attempt to seize control of the company's litigation rather than being in the company's interest.
27 Apr 2021

TAI MAY CHEAN (NRIC NO.: 531113-10-5670) 1. UNITED EASTERN RESOURCES SDN BHD (COMPANY NO.: 416181-T) 2. NG PIK LIAN (NRIC NO.: 320718-05-5012)

Citation

W-02(NCC)(A)-1955-10/2019 (Mahkamah Rayuan)
Court

NCC
Case number

W-02(NCC)(A)-1955-10/2019 (Mahkamah Rayuan)

The Court of Appeal held the appellant satisfied the subjective element of good faith (honest belief in a good cause of action with reasonable prospects) and the proposed derivative action was prima facie in the best interest of the company because the company paid the redemption sum, transfer documents were prepared but not executed, rentals were retained by the vendor, and imminent limitation and statutory/directorial duties justified allowing the action; pending mental health proceedings, winding up petition, delay and prior criminal charge did not, on the facts, defeat leave. Consequently…

Malaysia Case Law

Dato' Seri Timor Shah Rafiq Nautilus Tug & Towage Sdn. Bhd. PENCELAH AZIMUTH SHIP MANAGEMENT SDN BHD

PANG SUI JIN CELLPRO CONSULTANCY SDN BHD

1. ) DATO' SRI TEE YAM 2. ) DATO' JP, LOW KOK CHUAN 3. ) LEOW BOON KIN 4. ) ZHANG JIA 5. ) WONG SIAW PUIE CLASSITA HOLDINGS BERHAD (DAHULUNYA DIKENALI SEBAGAI CAELY HOLDINGS BERHAD)

TAI MAY CHEAN (NRIC NO.: 531113-10-5670) 1. UNITED EASTERN RESOURCES SDN BHD (COMPANY NO.: 416181-T) 2. NG PIK LIAN (NRIC NO.: 320718-05-5012)