[1] This is an appeal against the decision of the High Court in which the learned judge held that the appellants are not entitled to initiate arbitration proceeding under cl 17.1 of the Shareholders Agreement dated 11 October 2002 entered between the 1st appellant and the 4th respondent (Shareholders Agreement). The decision stems from an application by the respondents in the form of an Originating Summons.

[2] On 7 March 2013 we heard the appeal and after due consideration by us, we allowed the appeal for reasons set out below.

Background Facts

[3] The 1st appellant and the 4th respondent on 31 October 2001 incorporated Aquawalk Sdn Bhd as the original shareholders of one share each with a view of implementing a joint venture investment plan of owning and operating an Aqua-Marine Discovery Centre in Kuala Lumpur.

[4] The