Back
Next 
2019 MarsdenLR 333
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]
Petitioner Advocates:David Mathews,Harvinderjit Singh,Sara Ann Chay,Malarvily Perumal,Barry Goh ,Respondent Advocate: P Gananathan,Yeoh Kai Ying
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.
| Table of Content |
|---|
| 1. overview and background of the derivative action. (Para 1) |
[1] There are two appeals before us. The first Appeal No: W-02(IM)-561-03-2017 ("Appeal 561") relates to the order of the High Court striking out the Originating Summons ("the OS") upon the application by the 3rd defendant (1st respondent in Appeal 561) vide encl 11. The second Appeal No: W-02(IM)-562-03-2017 ("Appeal 562") relates to the order of the High Court striking out the OS upon the application of the 1st defendant (1st respondent in Appeal 562) vide encl 17. Both orders were made by the High Court at Kuala Lumpur on 13 March 2017.
