1. ) MOHD ABDUL KARIM BIN ABDULLAH 2. ) ABDUL KADIER SAHIB 3. ) AWANG DAUD BIN AWANG 4. ) MOHD SHARIFF BIN OMAR v Lembaga Kumpulan Wang Simpanan Pekerja

08i-66-03-2024b Federal Court (Mahkamah Persekutuan) 16 July 2024 • 08(i)-66-03/2024(B)

Catchwords

Section 46 of the Employees Provident Fund Act 1991 - joint and several liability of company's directors - proper party - institution of a suit against directors independent of the company.

Practice Areas

Section 46 of the Employees Provident Fund Act 1991

Judges (3)

Abdul Rahman bin Sebli Coram Amar Abang Iskandar bin Abang Hashim Delivered Zabariah binti Mohd Yusof Coram

Counsel (7)

Nashili & Co. Firm Rajashree Firm Adilah Abdul Wahid Counsel Respondent Afifi bin Ahmad Counsel Respondent Amira Nur Nadia binti Azhar Counsel Applicant Anis Dayana binti Mat Daud Counsel Respondent Rajashree Suppiah Counsel Applicant

Parties (5)

Lembaga Kumpulan Wang Simpanan Pekerja Respondent Abdul Kadier Sahib Applicant Awang Daud bin Awang Applicant Mohd Abdul Karim bin Abdullah Applicant Mohd Shariff bin Omar Applicant

Case Significance

1. ) MOHD ABDUL KARIM BIN ABDULLAH 2. ) ABDUL KADIER SAHIB 3. ) AWANG DAUD BI... is a Federal Court (Mahkamah Persekutuan) decision dated July 16, 2024 (citation: 08i-66-03-2024b). <p>Four company directors sought leave to appeal the Court of Appeal's decision upholding summary judgment ordering them to be jointly and severally liable under section 46 of the Employees Provident Fund Act 1991 for the company's failure to remit EPF contributions. The key issue was whether directors could be sued independently without the company being named as a party, following the precedent in Ong Kim Chuan. The Federal Court dismissed the leave application, holding that the EPF Act as soc The panel comprised Abdul Rahman bin Sebli, Amar Abang Iskandar bin Abang Hashim and Zabariah binti Mohd Yusof, with Amar Abang Iskandar bin Abang Hashim delivering the judgment. Counsel appearing: Adilah Abdul Wahid (counsel for respondent), Afifi bin Ahmad (counsel for respondent), Amira Nur Nadia binti Azhar (counsel for applicant), Anis Dayana binti Mat Daud (counsel for respondent), Rajashree Suppiah (counsel for applicant).

Key issues: Section 46 of the Employees Provident Fund Act 1991 - joint and several liability of company's directors - proper party - institution of a suit against directors independent of the company..

Summary

Four company directors sought leave to appeal the Court of Appeal's decision upholding summary judgment ordering them to be jointly and severally liable under section 46 of the Employees Provident Fund Act 1991 for the company's failure to remit EPF contributions. The key issue was whether directors could be sued independently without the company being named as a party, following the precedent in Ong Kim Chuan. The Federal Court dismissed the leave application, holding that the EPF Act as social legislation should be enforced to protect employee welfare, and the directors failed to meet the threshold under section 96(a) of the Courts of Judicature Act.

What was the outcome of 1. ) MOHD ABDUL KARIM BIN ABDULLAH 2. ) ABDUL KADIER SAHIB 3. ) AWANG DAUD BI...?

<p>Four company directors sought leave to appeal the Court of Appeal's decision upholding summary judgment ordering them to be jointly and severally l...