1. ) JITU PERDANA SDN BHD 2. ) EFEKTIF PERMAI SDN BHD v 1. ) Dato' Muhammad Bin Abdul Ghani 2. ) MOHD ZULLAIMY BIN MUHAMMAD 3. ) ROYALE MILLENNIUM (M) SDN BHD 4. ) DMG UNITED CONSTRUCTION SDN BHD 5. ) DMG HOLDINGS SDN BHD 6. ) BIG PHASE DEVELOPMENT SDN BHD 7. ) MOHD GHANI BIN HITAM
Catchwords
1. This action arises from a series of construction projects and, at first glance, appears to concern unpaid sums due to sub-contractors. Upon closer examination, however, the dispute engages more serious questions relating to the misuse of the corporate form, the diversion of company assets, and the personal liability of those behind the corporate structure. 2. The Plaintiffs, who were engaged as sub-contractors by the Sixth Defendant, seek to recover outstanding sums following the latter’s winding-up. Their claim is not confined to contract. Rather, they contend that the Sixth Defendant was operated as a façade or alter ego of the First Defendant and related entities, and that the corporate structure was deliberately employed to defeat the claims of creditors. 3. In that context, the Plaintiffs invoke both the common law principles permitting the lifting of the corporate veil and the statutory regime under section 540(1) of the Companies Act 2016, which imposes personal liability where a company’s business has been carried on with intent to defraud creditors. The Issues 4. The issues before this Court lie at the intersection of company law, insolvency, and fraud. They require this Court to determine whether the evidence justifies disregarding the separate legal personality of the corporate defendants, and whether the statutory threshold for fraudulent trading has been crossed.
Judges (1)
Parties (9)
BIG PHASE DEVELOPMENT Sdn Bhd Defendant DMG HOLDINGS Sdn Bhd Defendant DMG UNITED CONSTRUCTION Sdn Bhd Defendant EFEKTIF PERMAI Sdn Bhd Plaintiff JITU PERDANA Sdn Bhd Plaintiff ROYALE MILLENNIUM Sdn Bhd Defendant Dato' Muhammad bin Abdul Ghani Defendant Mohd Ghani bin Hitam Defendant Mohd Zullaimy bin Muhammad Defendant
Judgment
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Read on eJudgmentSource: eJudgment (ba-22ncc-35-03-2021)