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2017 MarsdenLR 2584
FEDERAL COURT PUTRAJAYA
DATO PREM KRISHNA SAHGAL – Appellant
Versus
MUNIANDY NADASAN & ORS – Respondent
[Civil Appeal No: 02(f)-53-08-2016(W)]
Important Points
Section 304(1) of the Companies Act 1965 holds individuals personally liable if business is conducted with the intent to defraud creditors.
Subject
Commercial - Company Law
Act Referred
Companies Act 1965: S.304, S.217, S.292
Headnote
Section 304 of the Companies Act 1965 addresses fraudulent trading, allowing courts to hold directors personally liable for debts if company business is conducted with intent to defraud creditors. The facts outlined establish that employees were creditors due to unpaid wages and statutory contributions. The court found intent to defraud as the appellant continued operations despite knowing there was no prospect of payment to employees. The final outcome affirmed the lower court's decisions declaring the appellant personally liable for the debts owed to the employees.
Legal Category Hierarchy
| Table of Content |
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| 1. appeal against dismissal in lower courts concerning fraudulent trading. (Para 1) |
[1] This is an appeal against the decision of the Court of Appeal dated 30 December 2015 which dismissed the appellant's appeal with costs. Leave to appeal was granted by this Court on 21 August 2016 on the following question of law:
