Semenyih Jaya Sdn. Bhd. v 1. ) LAU KOK LOON @ LAU SAY SIOK 2. ) Lau Tein Khang

wa-22ncc-211-05-2020 High Court (Mahkamah Tinggi) 9 April 2023 • WA-22NCC-211-05/2020 • 25 min read

21 cases cited (1 SG, 20 foreign)

Outcome

“ (own emphasis added) [67] For the reasons set out above, I allowed the Plaintiff's claim, specifically: i) A declaration that the payments made by the Plaintiff to the 1st Defendant, totalling RM10,608,167.43, are null and void; ii) An order that the 1st Defendant return the sum of RM10,608,167.43; iii) A declaration that the Defendants have breached their fiduciary duties owed to the Plaintiff; iv) Pre and Post-Judgment interests; and.

Quoted verbatim from the judgment of High Court (Mahkamah Tinggi) (wa-22ncc-211-05-2020). Read the full judgment on the official Malaysia Courts portal for the complete decision.

Catchwords

Derivative action - misappropritaion of funds - breach of directors' fiduciary duties - specific prescribed methods by which a shareholder may receive funds directly from a company - defence of absolute beneficial owner - whether entitles the director to bypass company procedures - whether the Duomatic principle applies - whether agreement of all shareholders required - whether the director's actions are intra vires and honest - whether the inaction of the other director or his failure to hold the director who committed the wrong liable constitutes a breach of fiduciary duty

Practice Areas

Company Law Equity & Trusts

Judges (1)

Wan Muhammad Amin bin Wan Yahya Delivered

Counsel (3)

Wong Kian Kheong Firm Alex Tan Chie Sian Counsel Defendant Ho Zhi Yee Counsel Defendant

Parties (3)

Semenyih Jaya Sdn Bhd Plaintiff Lau Kok Loon @ Lau Say Siok Defendant Lau Tein Khang Defendant

Statutes Cited

Companies Act 2016 (Cap 777)

Evidence Act 1950 (Cap 56)

Cases Cited (21)

SLR (1)

[2007] 4 SLR(R) 513

UK (10)

[1897] AC 22 [1925] AC 619 [1925] All ER 51 [1951] Ch 286 [1969] 2 Ch 365 [1998] Ch 1 [1999] Ch 253 [2007] EWHC 1245 [2021] AC 122 [2021] UKPC 4

MY (10)

[2005] 3 CLJ 355 [2005] MLJU 225 [2008] 5 MLJ 469 [2012] 3 MLJ 616 [2012] 5 CLJ 169 [2015] 6 MLJ 1 [2016] MLJU 1488 [2018] 2 MLJ 177 [2019] 3 MLJ 510 [2021] 4 MLJ 323

Judgment

Read the full judgment on the official Malaysia Courts portal.

Read on eJudgment

Source: eJudgment (wa-22ncc-211-05-2020)