The court affirmed the necessity for good faith and interest of the company in derivative actions under the Companies Act 2016.

[1] This is the Plaintiff's application for leave to commence derivative action, as a director and shareholder of the 1st Defendant company, MVD International Sdn Bhd ("MVD"), for the benefit of the 1st Defendant against Angel Checks Sdn Bhd (Company No 1194578-U), Paramjeet Singh a/l Teja Singh (IC No 690917-08-5511) ("Paramjeet") and Sohan Delvinderjit Kaur (IC No 710427-08-5880).

[2] The application for leave is made pursuant to ss 347 and 348 of the Companies Act 2016 , which provide as follows:

347 Derivative proceedings

(1) A complainant may, with the leave of the Court initiate, intervene in or defend a proceeding on behalf of the company.

(2) Proceedings brought under this section shall be brought in the company's name.

(3) The right of any person to bring, intervene in, defend or discontinue any proceedings on behalf of a company at common law is abrogated.