Raja Azlan Shah J:

The question in this application is whether the statement of claim ought to be struck out under O. 25 r. 4 of the Rules of the Supreme Court as disclosing no reasonable cause of action.

The plaintiffs were shareholders of a company incorporated under the style of Kiwi Dry Cleaners Ltd and registered in the Federation of Malaya, now States of Malaya, in 1959 under the Companies Ordinance, 1946. The defendants are accountants and secretaries as well as auditors practising under the style of Peat, Marwick, Mitchell & Co. in Kuala Lumpur.

Para. 3 of the claim avers that the defendants were employed as accountants and secretaries of the plaintiffs' business, ie the business of the company in Kuala Lumpur, and subsequently as auditors. Para. 4 avers that the terms of the said employment were expressly agreed to and were inter alia that the defendants as accountants and secretaries were to make weekly visits to the plaintiff's place of business, check the accounts, counter-sign cheques, and generally to see that the plaintiffs' business was properly and profitably carried out. Para. 5 avers that the defendants as auditors expressly agreed to prepare and send