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2023 MarsdenLR 935

HIGH COURT MALAYA PENANG
TAN SRI DATO SRI TAN KOK PING & ORS – Appellant
Versus
DATO CHAN KEAN HIN & ORS – Respondent
[Civil Suit No: PA-22NCvC-29-03-2023]



Petitioner Advocates:Karin Lim,A Suppiah,Nicholas Lim ,Respondent Advocate: T Gunaseelan,Keshvinjeet Singh,Eng Yuh Pei

Members of a registered club have the authority to remove the entire committee en bloc, allowing the appointment of an interim committee, particularly under circumstances of misconduct or loss of confidence.

Headnote:(A) Societies Act 1966 - Sections 9(c) and 35(b) - Rules of Court 2012 - Order 29 - Ex parte injunction - Judicial authority vested in members of a club to remove committee - Club committee's actions must align with the best interests of members - Members exercises right to replace complete committee amid loss of confidence due to misconduct - Court found proper procedure followed in requisition of extraordinary general meeting (EGM), thus validating the resolutions passed to remove committee and appoint interim committee - Injunction granted to prevent committee from undermining the interim committee's authority and managing club affairs during transition period. (Paras 4, 19, 33, 94)

(B) Injunctive relief - Serious issues to be tried - Balance of convenience favors maintaining status quo until resolution of legal disputes - Damages inadequate to remedy reputational harm inflicted during committee transition - Preserved state of affairs from the point of EGM, maintaining authority of interim committee established post-removal of the previous committee. (Paras 70, 81, 84)

Table of Content
1. initial factual background and procedural history. (Para 1 , 2 , 3 , 4 , 5 , 6 , 7)
2. presentations on the plaintiffs' case and club rules. (Para 8 , 9 , 10 , 15 , 18 , 19)
3. plaintiffs' reasons for actions against the committee. (Para 11 , 12 , 13 , 14 , 16)
4. formal resolutions passed at the said egm. (Para 20 , 21)
5. discussion on the necessity of an interim committee. (Para 22 , 23)
6. need for judicial intervention and status quo preservation. (Para 24 , 30 , 32 , 34)
7. said defendants' counterclaims regarding egm validity. (Para 27)
8. urgency for judicial intervention. (Para 31 , 33)
Quay Chew Soon J:

Parties

[1] The 1st Plaintiff is a member of the Penang Swimming Club ("Club"). The 2nd to 6th Plaintiffs are members of an Interim Committee of the Club ("Interim Committee"), who were appointed at an EGM held on 26 February 2023 ("Said EGM"). The 7th Plaintiff is the Public Officer of the Club, registered pursuant to s 9(c) of the Societies Act 1966 . The 1st to 5th Plaintiffs had been the past Presidents of the Club. The 6th Plaintiff had served as a Chairman and also a member of the Disciplinary Committee of the Club. All the Plaintiffs have been members of the Club for more than 20 years.

[2] The Defendants are also members of the Club. The positions which were held by them in the Club, prior to the Said EGM on 26 February 2023, are as follows:

(i) the 1st Defendant was the President of the Club;

(ii) the 2nd Defendant was the Vice President of the Club;

(iii) the 3rd Defendant was the Honorary Secretary of the Club;

(iv) the 4th Defendant was the Honorary Treasurer of the Club;

(v) the 5th Defendant was the Club Captain of the Club; and

(vi) the 6th to 11th Defendants were the Committee Members of the Club.

[3] The 1st to 6th Defendants and the 8th to 10th Defendants ("Said Defendants") entered appearance and are represented in these proceedings. The 11th Defendant has not filed any appearance and is not represented. The Plaintiffs have withdrawn their action against the 7th Defendant, as she is no longer a Committee Member of the Club.

Introduction

[4] The Plaintiffs filed an application dated 7 March 2023 vide encl 4 ("Encl 4") for an ex parte injunction against the Defendants. Enclosure 4 is made under O 29 of the Rules of 2012 ("Rules of "). On 8 March 2023, I granted an ex parte injunction ("ex parte Injunction Order") (Enclosure 9). The return date for the inter partes hearing of Encl 4 was fixed on 22 March 2023, ie 14 days later.

[5] At the inter partes hearing of Encl 4 on 22 March 2023, I gave directions for the filing of affidavits and written submissions. I fixed the next inter partes hearing of Encl 4 on 21 April 2023, after affidavits have been exhausted and written submissions exchanged. Pending the inter partes hearing of Encl 4 and by consent, I granted an Ad Interim injunction ("Ad Interim Injunction Order") (Encl 26).

[6] On 29 March 2023, the Said Defendants in turn filed an application vide encl 21 ("Encl 21") for an ex parte injunction against the Plaintiffs. Since the Plaintiffs are legally represented in these proceedings and had earlier obtained the ex parte Injunction Order, I directed that Encl 21 be served on the Plaintiffs and fixed the same for hearing on 31 March 2023. At the opposed ex parte hearing on 31 March 2023, I dismissed Encl 21.

[7] At the inter partes hearing of Encl 4 which took place on Thursday 20 April 2023 (instead of Friday 21 April 2023, for reasons which will be explained later), I granted an injunction inter partes. I allowed the Ad Interim Injunction Order to continue pending the disposal of the instant suit. Here are the grounds of my decision in respect of Encl 21 and Encl 4.

The Plaintiffs' Case

[8] The Plaintiffs' case is this. The Defendants were elected as members of the Committee of the Club at an AGM held on 18 September 2022. Their term of office will expire in June 2023. However, they were removed at the Said EGM on 26 February 2023.

[9] The Club is duly

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