[1] The present appeal concerns the preliminary issue raised by the appellant as to whether the suit before the High Court was a properly constituted derivative action.

[2] The 1st respondent commenced a derivative action for and on behalf of the 2nd respondent in the High Court. On 26 September 2013, the High Court allowed the claim.

[3] On 21 March 2016, the Court of Appeal dismissed the preliminary issue raised by the appellant and found that the suit filed by the 1st respondent in the High Court was a properly constituted derivative action.

[4] Leave to appeal was granted by this Court on 4 August 2016 for a single question of law which reads:

"Whether a derivative action may in law be brought for the benefit of a company, the management and control of which are deadlocked."

Material Facts

[5] At the High Court, the 1st respondent was the plaintiff, the 2nd respondent was the 1st defendant, and the appellant was the 2nd defendant. The 3rd defendant in the High Court, Dato' Seri Dr Abdullah Fadzil Che Wan, is not a party to this appeal.