The reference in this case involves the dismissal of Terry Mogindol ( " the claimant " ) by Asian Supply Base Sdn Bhd ( " the company " ).

Background Facts

The claimant was engaged as general manager and chief executive of the companyvide the company's letter of appointment to the claimant dated
20 August 1998 (pages 63 - 67, CLBOD). His appointment for this position is on a contract basis with the contract term being 24 months ( " the said contract " ).

The claimant commenced work on 26 October 1998 and his last day of contract is 25 October 2000. It is also a term of the said contract that 'at its completion, a further contract may be negotiated, on a mutual agreed basis.'

Prior to the expiry of the said contract, the claimant submitted a paper entitled " EMPLOYMENT TERMS/SALARY INCREMENT FOR ASB GENERAL MANAGER/CHIEF EXECUTIVE OFFICER " at the Board of Directors' ( " the Board " ) Meeting held on 28 August 2000, seeking the Board's approval to decide on his employment status and to approve his annual increment for his second year of service which will be completed by 25-10-2000. In his paper the claimant had requested the Board to approve his employment with the company either (i) on a permanent basis with effect from 26 October 2000, on the same terms and conditions as that given to the former general manager Jauhari Said or (ii) on a contract basis with the same kind of remuneration and employment terms/conditions similar to that of previous management staff who worked on contract with ASB namely Jerry Withers (Ex. base manager) and Ronald Guilbeau (Ex. Consultant)( " the claimant's extension proposal " ). Jerry Withers's (Ex base manager) previous remuneration was RM437,500 per annum including housing, utilities, airfare for vacation, company car, and medical costs. Ronald Guilbeau's (Ex Consultant) previous payment was US$360 per day, housing allowance of RM3,850 per month, utilities, yard maintenance of RM150 per month, house maintenance of RM540 per month, and car at a cost of RM1,400 per month.

The board at the said meeting deliberated on the claimant's extension proposal and it unanimously resolved that the claimant's two-year contract with the company be left to expire on 25 October 2000. The Chairman Datu Nasrun Datu Mansur (COW1) then subsequently, vide letter dated 30 August 2000 notified the claimant of the board's decision on the said contract matter.

The board also resolved that an ad hoc selection committee be set up to deliberate and recommend to it for approval, the appointment of an internal candidate to succeed the claimant as the successor would be familiar with the company's operation and would be less costly in terms of remuneration and benefits as opposed to an external candidate.

On or around 19 September 2000, a draft copy of the minutes ( " the draft copy of the minutes " ) of the company's 65th Board of Directors' Meeting was forwarded to the claimant for his vetting. The claimant vetted the draft copy of the minutes and returned it on or around 22 September 2000. The draft copy of the minutes contained the board's considerations of the factors that were taken into account for the non-extension of the claimant's said contract.

At the 66th Board of Directors' Meeting held on 25 September 2000, the Board resolved to appoint Harris Annuar Tan as the new general manager of the company with effect from 26 October 2000.

By letter dated 29 September 2000, the claimant wrote to COW1, requesting for the reasons as to why his employment was not extended.

In response to the claimant's query in his said letter, the company vide its letter dated 1 November 2000, furnished the reasons for the non-renewal of the claimant's contract which the company submits are those contained in the draft copy of the minutes of the 65th Board of Directions' Meeting held on 28 August 2000 the contents of which the claimant was aware when he returned the said dra