Malaysia Case Law: Decisions & Judgments | LexChat

Malaysia Case Law

Section 132 duty of directors (companies act 1965)
  • 11 Feb 2020

    Delta-Pelita Sebakong Sdn Bhd 1. Wong Hou Lianq 2. Kathryn Ma Wai Fong (f) 3. Golden Cash Harvest Sdn Bhd

    Citation
    Q-02(NCvC)(W)-22-01/2018, Q-02(NCvC)(W)-90-01/2018, Q-02(IM)(NCvC)-2001-09/2018 (Mahkamah Rayuan)
    Court
    NCvC
    Case number
    Q-02(NCvC)(W)-22-01/2018, Q-02(NCvC)(W)-90-01/2018, Q-02(IM)(NCvC)-2001-09/2018 (Mahkamah Rayuan)

    On the facts the Court of Appeal found Delta’s 6/8/2013 letter amounted to wrongful repudiation and unlawful termination of the agreement; Delta had effectively elected/ratified the agreement and was estopped from denying liability despite a breach of s.131 by directors; Golden therefore was entitled to the contract balance and associated recoverable losses (including quantum meruit if necessary); allegations of breach of fiduciary duty under s.132 were not proven; certain special damages were allowed and Delta’s counterclaim largely failed except for nominal damages.

    • Section 131 disclosure (companies act 1965)
    • Section 132 duty of directors (companies act 1965)
    • Repudiation and wrongful termination of contract
    • Quantum meruit (contracts act / case law)
    • Special and general damages
    • Estoppel and election to affirm