Datuk Kasi A/L K.L. Palaniappan v 1. ) Modern Eden Sdn Bhd 2. ) PB Trustee Services Berhad (Wasi Bagi Harta Pusaka Allahyarmah Tan Sri Datuk Haji Mustapha Kamal Bin Haji Abu Bakar No. K/P: 490318-08-5599) 3. ) Felina Binti Tan Sri Datuk Haji Mustapha Kamal 4. ) MKN Holdings Sdn Bhd 5. ) Setia Haruman Sdn Bhd

wa-24ncc-411-09-2017 High Court (Mahkamah Tinggi) 29 December 2024 • WA-24NCC-411-09/2017 • 86 min read
20 cases cited (1 SG, 19 foreign)

Catchwords

Legal dispute – Relationship of trust and confidence – long standing business relationship between parties – parties set up several companies-as vehicles to develop properties – these companies eventually sold – to provide capital for their other projects – there onwards – Plaintiff suggests – relationship of trust and confidence – each party is responsible for their expertise. Remedies – S. 346 of the Companies Act, 2016 – on the grounds – Defendants guilty of minority oppression – Plaintiff claimed – unfairly treated – Complain of oppression – grounded on “understanding” and/or “New Board Understanding” – must necessarily fail – a mere dissatisfaction with the wishes of the majority is not oppression - Those who take interests in companies limited by shares have to accept majority rule - only when majority rule passes over into rule oppressive of the minority – disregard their interest – that this section can be invoke – Plaintiff minority shareholder – must accept majority rule – the decision of the majority shareholders are binding – unless shown – contrary to the Articles of Association. Principles in Ebrahimi – the company is not quasi – partnership – no basis to invoke – just and equitable principles – The doctrine of legitimate expectation does not apply in this case – Plaintiff not been vigilant in protecting his rights when he has the opportunity to do so. Shareholder’s Agreement – Plaintiff cannot rely on it – not a party to it – apart from that – the Shareholder’s Agreement lapsed – even if it subsists – Plaintiff also not entitled to a board seat due to the Clause in the Agreement and the percentage of shares.

Judges (1)

Mohd Arief Emran bin Arifin Delivered

Counsel (8)

Abd Halim Ushah & Assoc. Firm M. Pathmanathan & Co. Firm Owee & Ho Firm Eric Clement Counsel Defendant M. Pathmanathan Counsel Defendant PL Leong Counsel Plaintiff Shirin Pathmanathan Counsel Defendant Vivekhapriya Counsel Plaintiff

Parties (6)

MKN Holdings Sdn Bhd Respondent Modern Eden Sdn Bhd Respondent PB Trustee Services Berhad (Wasi Bagi Harta Pusaka Allahyarmah Tan Sri Datuk Haji Mustapha Kamal Bin Haji Abu Bakar No. K/P: 490318-08-5599) Respondent Setia Haruman Sdn Bhd Respondent Datuk Kasi a/l K.l. Palaniappan Applicant Felina binti Tan Sri Datuk Haji Mustapha Kamal Respondent

Statutes Cited

Companies Act
s 346
Companies Act 2016 (Cap 777)
s 300 s 346

Cases Cited (20)

SLR (1)
[1993] 2 SLR 523
UK (4)
[1947] 2 All ER 255 [1967] 2 AC 46 [1973] AC 360 [1975] 1 WLR 579
MY (15)
[1968] 1 MLJ 97 [1973] 2 MLJ 74 [1978] 2 MLJ 227 [1988] 1 MLJ 395 [1993] 3 MLJ 713 [1995] 3 MLJ 189 [1996] 1 CLJ 393 [1996] 1 MLJ 661 [1996] MLJ 152 [2003] 3 CLJ 497 [2010] 6 CLJ 72 [2014] 3 CLJ 73 [2015] MLJU 910 [2018] 2 MLJ 133 [2021] 4 CLJ 721

Judgment

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Read on eJudgment

Source: eJudgment (wa-24ncc-411-09-2017)