HIGH COURT MALAYA KUALA LUMPUR
LOOH KEO @ LOOH LIM TENG & ANOR – Appellant
Versus
PROSPELL ENTERPRISE SDN BHD & ORS – Respondent
[28] The Company Defendants referred the Court to s 213(1) of the Companies Act 2016 which provides:
"213. (1) A director of a company shall at all times exercise his powers in accordance with this Act, for a proper purpose and in good faith in the best interest of the company."
[29] In support of their submissions, the Company Defendants referred the Court to the case of Dato' Tan Kim Hor v. Tan Chong Consolidated Sdn Bhd (supra) for the proposition that a director's right to inspect records of a company cannot be exercised for an improper purpose and the inspection would be detrimental to the interests of the Company Defendants.
[30] The Company Defendants also referred the Court to the case of Kwan Teck Hian v. Insuflex Corporation Sdn Bhd , 2017 MarsdenLR 1105 (High Court) which followed Dato' Tan Kim Hor for the proposition that a director's right to inspect a company's books and records is absolute but can be forfeited if exercised for an improper purpose.
[31] The Individual Defendants argued that the Plaintiffs' application for inspection of the companies' records is motivated by an ulterior motive to advance their personal cause in Suit 112, which is unrelated to the 1st P
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