2019 MarsdenLR 1029

COURT OF APPEAL PUTRAJAYA
TAI MAY CHEAN – Appellant
Versus
NEW WAY CAPITAL SDN BHD & ANOR AND ANOTHER APPEAL – Respondent
[Civil Appeal Nos: W-02(IM)(NCC)-561-03-2017 & W-02(IM)(NCC)-562-03-2017]

Locus standi is a prerequisite for derivative actions, necessitating identification of all wrongdoers involved.

Headnote:This judgment concerns two appeals arising from High Court orders striking out an Originating Summons in a double derivative action against four defendants. The Court found the plaintiff lacked locus standi and failed to meet the evidentiary requirements necessary for a derivative claim under the Companies Act 1965. The judge's conclusion emphasized the necessity of proper parties being named in such actions, alongside identifying the wrongdoers in control. The Court agreed with the learned judge that the appeals should be dismissed as the plaintiff had not demonstrated the prerequisites for a derivative action.