Introduction

[1] This is an application by a shareholder of a wound up company to stay the court's winding up order under s 243(1) of the Companies Act 1965 ( CA ). The effect of a stay order in s 243(1) is far reaching. In Vijayalakshmi Devi Nadchatiram v. Jegadevan Nadchatiram & Ors, at p 204, [1995] 1 MLJ 830, NH Chan JCA in delivering the court of Appeal's judgment, explained that the effect of a stay of a winding up order under s 243(1) is "a total discontinuance or termination of the winding up proceedings".

[2] This judgment will discuss what is required for a shareholder of a company [the CA employs the term "contributory" (as defined in s 4(1) )] to satisfy the winding up court to grant a "permanent" stay of the winding up order under s 243(1) and how the court should exercise its discretion in respe