Lee Hun Hoe CJ (Borneo):

[1] Leave to appeal against the decision of the Federal Court delivered on 4 August 1975, to the Yang Dipertuan Agung and stay of execution in respect of the first two orders were granted to second and third respondents soon after the delivery of judgment. The first respondent, the Kong Thai Sawmill (Miri) Sdn Bhd now applies for leave to appeal to the Yang Dipertuan Agung and for stay of execution in respect of three further orders. Leave to appeal has not been opposed.

[2] Several grounds were put forward for stay of execution. It was said that the appointment of "watchdog director" was inconsistent with and in contravention of the Articles of Association of the company. The case of Re Chi Liung & Son Ltd, Tong Chong Fah v. Tong Lee Hwa & Ors, [1968] 1 MLJ 97 was cited. There because of a pending probate action the Court was prepared to maintain the status quo till the determination of that action. In the present case the situation is entirely different. Another ground was that two of the persons named as alternate "watchdog directors" were not parties to the action and that this would be unfair to the other shareholders. It was further said that t