Malaysia Case Law: Decisions & Judgments

Topic

Share dilution

Legal area

Court

2 May 2025

ALI SAID HAMDAN AL RAWAHI AHMAD BIN HASSAN

Citation

BA-12BNCvC-27-05/2024 (Mahkamah Tinggi)
Court

High Court
Case number

BA-12BNCvC-27-05/2024 (Mahkamah Tinggi)

The High Court upheld the Sessions Court's findings that the appellant failed to prove fraudulent misrepresentation or forgery on the required standard of proof; the Sessions Court applied the correct legal tests, preferred the respondent's contemporaneous explanations and documents, and the burden rested on the appellant to produce cogent proof (including expert evidence) of forgery; therefore no appellate intervention was justified and the appeal was dismissed.
8 Aug 2024

1. ) CHAN KOK THIN @ CHAN KOK CHENG 2. ) CHAN BEE TIN 3. ) CHAN BEE HIM 1. ) CHAN YOK SENG 2. ) CHAN LIAN TEE 3. ) CHAN EDDY 4. ) SON HUUT PLANTATION SDN BHD

Citation

JA-24NCC-27-10/2022 (Mahkamah Tinggi)
Court

High Court
Case number

JA-24NCC-27-10/2022 (Mahkamah Tinggi)

The court held that a singular, egregious dilution can constitute oppressive conduct if it shows a strong propensity to blatantly disregard or prejudice a shareholder's interests, and that the court may exercise statutory remedial powers to order relief including share purchase, regulation of company affairs, capital reduction or winding up to remedy the oppression.
14 Aug 2023

1. ) LIM SWEE CHONG, ROBERT 2. ) LIM SWEE JOO, RICHARD 3. ) XXXX 1. ) XXXX 2. ) CHONG KOK MING 3. ) CHONG KOK PENG 4. ) CKM METAL TECHNOLOGIES SDN BHD

Citation

JA-24NCC-5-01/2019 (Mahkamah Tinggi)
Court

High Court
Case number

JA-24NCC-5-01/2019 (Mahkamah Tinggi)

The Court found the allotment of 372,000 shares to D1 and D2 without notice diluted the Plaintiffs' majority holding and constituted oppressive conduct under s.346; the appropriate remedy was to value the 372,000 shares at par as at the 2018 allotment to restore Plaintiffs' original position and to award consequential damages for withheld dividends (RM263,500) and recoverable legal fees net of costs, resulting in a final award of RM948,320 payable jointly and severally by the 1st, 2nd and 3rd Defendants.
30 Nov 2021

VIGNA RAJ A/L SITHAMPARANATHAN 1. ) METRO ELDERCARE SDN BHD 2. ) RAMESH SIVARAJ A/L RAJASINGAM CHELLIAH PENCELAH Ushadevi A/p Velayutham

Citation

BA-24NCvC-448-06/2020 (Mahkamah Tinggi)
Court

High Court
Case number

BA-24NCvC-448-06/2020 (Mahkamah Tinggi)

The application for leave was dismissed because the plaintiff failed to prove on the balance of probabilities that he acted in good faith to protect the company's interest and not for collateral personal purposes; the allegations primarily concerned the plaintiff's personal losses and inconsistent concurrent proceedings, and did not establish company loss or satisfy the higher threshold required under s348(4).
26 Sept 2021

1. LIM SWEE CHONG, ROBERT (No. Pasport Singapura: S1691135F) 2. LIM SWEE JOO, RICHARD (No. Pasport Singapura: S1310204Z) 3. HO SANG BIN (No. Pasport Singapura: E5624455E) 4. PUAH KOT CHOON (No. Pasport Singapura: E5184611E) 1. TAT TAT WEI,

Citation

JA-24NCC-5-01/2019 (Mahkamah Tinggi)
Court

High Court
Case number

JA-24NCC-5-01/2019 (Mahkamah Tinggi)

The court accepted the contemporaneous documentary and accounting evidence showing RM250,000 was injected as paid-up capital in accordance with a unanimous resolution and minutes, that Plaintiffs were intended beneficial owners of 155,000 shares held on trust, and that subsequent allotments in 2018 which diluted Plaintiffs' holding, refusal to register their shares, withholding of dividends and exclusion from management constituted oppressive conduct and breach of fiduciary duties under s.346 Companies Act 2016; accordingly the s.346 remedies sought (specified in Annexure 1 prayers (1)–(9) an…
15 Apr 2021

CAPASIA SOLAR ONE LTD SUN ENERGY VENTURES HOLDINGS (LABUAN) LTD DAN 7 LAGI

Citation

WA-22NCC-329-07/2020 (Mahkamah Tinggi)
Court

High Court
Case number

WA-22NCC-329-07/2020 (Mahkamah Tinggi)

Defendants raised sufficient triable issues — including whether the MOU varied the MIA, whether the consent order precludes reliance on the earlier dilution breach, estoppel/set-off and the proper construction of the Memorandum of Deposit (indemnity vs limited liability satisfied from mortgaged securities) — that required full trial and oral evidence; therefore summary judgment under Order 14 was inappropriate and the application was dismissed.

Malaysia Case Law

ALI SAID HAMDAN AL RAWAHI AHMAD BIN HASSAN

1. ) CHAN KOK THIN @ CHAN KOK CHENG 2. ) CHAN BEE TIN 3. ) CHAN BEE HIM 1. ) CHAN YOK SENG 2. ) CHAN LIAN TEE 3. ) CHAN EDDY 4. ) SON HUUT PLANTATION SDN BHD

1. ) LIM SWEE CHONG, ROBERT 2. ) LIM SWEE JOO, RICHARD 3. ) XXXX 1. ) XXXX 2. ) CHONG KOK MING 3. ) CHONG KOK PENG 4. ) CKM METAL TECHNOLOGIES SDN BHD

VIGNA RAJ A/L SITHAMPARANATHAN 1. ) METRO ELDERCARE SDN BHD 2. ) RAMESH SIVARAJ A/L RAJASINGAM CHELLIAH PENCELAH Ushadevi A/p Velayutham

1. LIM SWEE CHONG, ROBERT (No. Pasport Singapura: S1691135F) 2. LIM SWEE JOO, RICHARD (No. Pasport Singapura: S1310204Z) 3. HO SANG BIN (No. Pasport Singapura: E5624455E) 4. PUAH KOT CHOON (No. Pasport Singapura: E5184611E) 1. TAT TAT WEI,

CAPASIA SOLAR ONE LTD SUN ENERGY VENTURES HOLDINGS (LABUAN) LTD DAN 7 LAGI