A shareholder lacks locus standi to challenge proceedings or judgments affecting the company as it is a distinct legal entity; only the company can pursue claims regarding its interests.

Introduction

[1] On 29 November 2024, the Plaintiff ("P") filed this originating summons to stop a public auction scheduled on 23 December 2024. P also seeks a declaration that a consent judgment dated 16 March 2023 ("consent judgment") is valid and binding on the parties in this action.

[2] In the originating summons herein, P prays for the following reliefs:

"1) Satu deklarasi bahawa Penghakiman Persetujuan bertarikh 16 Mac 2024 [?2023] bagi kes Mahkamah Tinggi Malaya di Pulau Pinang melalui Guaman Sivil No PA-22NCvC-151-09/2018 ada lah sah dan mengikat pihak-pihak dalam tindakan ini.

2) Perintah Injunksi untuk menghentikan lelongan awam hartanah yang di nyatakan dalam prosiding halang tebus melalui Perintah Jualan bertarikh 11 November 2024 di Mahkamah Tinggi Malaya di Pulau Pinang melalui Saman Pemula No PA-24FC-256-05/2024 yang dijadualkan pada 23 Disember 2024 sementara menunggu pelupusan Notis Usul bertarikh 26 September 2024 di Mahkamah Tinggi Pulau Pinang melalui kes Pasca Penggulungan No: PA-28PW-54-09/2024."

[3] Concurrently with this originating summons, P filed an ex-parte application in Encl 3 for an interim injunction to stop the public auction scheduled on 23 December 2024. On 4 December 2024, I allowed Encl 3 and granted an ex-parte injunction in favour of P.

[4] At the return date on 18 December 2024, I granted an ad interim injunction pending the hearing of this originating summons. Directions were given for the exchange of affidavits and the filing of written submissions. The originating summons and the inter partes hearing of Encl 3 were fixed for hearing together on 19 February 2025.

[5] At the hearing on 19 February 2025, I dismissed the originating summons and Encl 3. Here are the grounds of my decision.

Background Facts

[6] On 24 May 2024, the Defendant ("D") filed a foreclosure action in Originating Summons No PA-24FC-256-05/2024 ("foreclosure proceeding"). Pursuant to the foreclosure proceeding, D sought an order for sale of a property situated at Daerah Barat Daya, Negeri Pulau Pinang ("land").

[7] The land is registered under the name of a company known as Lis-Tec Sdn Bhd ("company"). P is the shareholder and director of the company.

[8] The company was wound up on 3 December 2014 by Hong Leong Bank. The official receiver has been appointed as the liquidator of the company.

[9] On 11 November 2024, an order for sale of the land was granted by the court ("order for sale"). No appeal was filed by the company against the order for sale.

The Foreclosure Proceeding

[10] P alleges that the order for sale was obtained without the presence of the representative of the company or his solicitors, Messrs C P Ang & Company.

[11] At para 20 of his affidavit in support affirmed on 29 November 2024 (Encl 4) in relation to the ex-parte application for an interim injunction, P avers:

"Saya di fahamkan bahawa pada tarikh pengurusan kes pada 11 November 2024 bagi prosiding halang tebus tersebut, Defendan sekali lagi, tanpa kehadiran wakil daripada syarikat Lis-Tec dan/atau Tetuan C P Ang & Company telah mengambil kesempatan memohon suatu perintah jualan dalam prosiding halang tersebut tersebut..."

[12] This averment is rather misleading. The fact is that the foreclosure proceeding was attended by the official receiver as the liquidator of the company. A