1. ) Kulim (Malaysia) Berhad 2. ) Kulim Energy Nusantara Sdn Bhd v 1. ) Ahamad Bin Mohamad 2. ) Abdul Rahman Bin Sulaiman 3. ) Zulkifly Bin Zakariah 4. ) Jamaludin Bin Md Ali 5. ) Azli Bin Mohamed 6. ) Shahrom Bin Mohd Saad

wa-22ncc-679-12-2022 High Court (Mahkamah Tinggi) 23 February 2026 • WA-22NCC-679-12/2022 • 207 min read

33 cases cited (10 SG, 23 foreign)

Catchwords

Corporate Governance – The primary context regarding the importance of internal controls and director responsibilities. Fiduciary Duties – Specifically the duties of loyalty and fidelity expected of senior management and directors – Breach of Fiduciary and Statutory Duties – Whether the 1st to 4th Defendants breached their fiduciary, common law, or contractual duties by failing to disclose material facts, misleading the board on risks, and causing unauthorized payments. Negligence vs. Incompetence – Distinguishing between a failure to exercise reasonable care and a lack of skill versus "cardinal sins" like dishonesty – Fraud and Concealment – Whether there was evidence of "cardinal sins" such as the diversion of corporate assets, conflict of interest, or deliberate suppression of information for personal gain. Negligence vs. Fiduciary Breach – Whether the Defendants' actions constituted actionable negligence or crossed the "thin line" into dishonest breaches of fiduciary duty. Section 581 Companies Act 2016 – The statutory "safety valve" used by the Court to relieve honest but negligent directors from liability – Whether the Defendants, having been found negligent but honest, ought fairly to be excused from liability under Section 581 of the Companies Act 2016. Charterbridge Principle – The objective test used to determine if an "honest and intelligent man" in the director's position would believe the transaction benefited the company. Subjective Honesty – The inquiry into whether defendants acted with an earnest desire to advance the company's interests.

Judges (1)

Mohd Arief Emran bin Arifin Delivered

Parties (8)

Kulim Berhad Plaintiff Kulim Energy Nusantara Sdn Bhd Plaintiff Abdul Rahman bin Sulaiman Defendant Ahamad bin Mohamad Defendant Azli bin Mohamed Defendant Jamaludin bin Md Ali Defendant Shahrom bin Mohd Saad Defendant Zulkifly bin Zakariah Defendant

Statutes Cited

Companies Act

s 213 s 214 s 354 s 518 s 581

Companies Act 1965 (Cap 777)

Companies Act 2016 (Cap 777)

Cases Cited (33)

SG (4)

[2013] SGHC 113 [2014] SGCA 22 [2020] SGCA 35 [2023] SGCA 17

SLR (6)

[1996] 1 SLR 541 [2002] 2 SLR(R) 848 [2004] 4 SLR(R) 424 [2011] 3 SLR 1093 [2014] 3 SLR 329 [2018] 2 SLR 333

UK (12)

[1896] AC 44 [1914] AC 932 [1967] 2 AC 134 [1970] Ch 62 [1974] AC 821 [1988] Ch 1 [1995] 2 AC 378 [1996] 1 AC 421 [1996] AC 421 [1998] Ch 1 [2023] EWCA Civ 1433 [2025] EWCA Civ 39

AU (1)

[2011] FCA 717

MY (10)

[1995] 1 CLJ 223 [2000] 2 CLJ 833 [2008] 5 MLJ 469 [2012] 3 MLJ 616 [2012] 5 CLJ 169 [2016] 7 CLJ 380 [2018] 2 CLJ 641 [2019] 2 MLJ 379 [2021] 2 CLJ 369 [2024] 1 CLJ 76

Judgment

Read the full judgment on the official Malaysia Courts portal.

Read on eJudgment

Source: eJudgment (wa-22ncc-679-12-2022)