CAPITAL CITY PROPERTY SDN. BHD. v 1. ) Teh Swee Neo 2. ) Lee Yong Hen
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Case Significance
CAPITAL CITY PROPERTY SDN. BHD. v 1. ) Teh Swee Neo 2. ) Lee Yong Hen is a Court of Appeal (Mahkamah Rayuan) decision dated January 6, 2025 (citation: j-02ncvcw-649-04-2023). <p>Capital City Property Sdn Bhd appealed against a High Court decision that pierced the corporate veil to impose liability for unpaid rent owed by its related company CCRM Management Sdn Bhd to individual purchasers of commercial lots. The key issue was whether a court can pierce the corporate veil of one company and impose its liability on another company in the same group. The Court of Appeal allowed the appeal, finding the High Court erred in piercing the corporate veil as there was no evide The panel comprised Ismail bin Brahim, See Mee Chun and Wong Kian Kheong, with Wong Kian Kheong delivering the judgment. Counsel appearing: Dato' Joshua Kevin (counsel for appellant), Leng Wie Mun (counsel for appellant), Lim Chang (counsel for respondent), Yap Zhen Yun (counsel for appellant).
Summary
Capital City Property Sdn Bhd appealed against a High Court decision that pierced the corporate veil to impose liability for unpaid rent owed by its related company CCRM Management Sdn Bhd to individual purchasers of commercial lots. The key issue was whether a court can pierce the corporate veil of one company and impose its liability on another company in the same group. The Court of Appeal allowed the appeal, finding the High Court erred in piercing the corporate veil as there was no evidence of actual fraud, the liable company was solvent, and its judgment could be enforced.
What was the outcome of CAPITAL CITY PROPERTY SDN. BHD. v 1. ) Teh Swee Neo 2. ) Lee Yong Hen?
<p>Capital City Property Sdn Bhd appealed against a High Court decision that pierced the corporate veil to impose liability for unpaid rent owed by it...