JUDGMENT

(Enclosure 1)

Leonard David Shim J:

Introduction

[1] This is an application for leave to initiate a derivative action on behalf of the 1st respondent, Power Majestic Sdn Bhd (PMSB) against the 2nd to 8th respondent pursuant to ss 347, 348 and 350 of the Companies Act 2016.

[2] The grounds of this application are (a) the applicants are acting in good faith (b) it is in the best interest of the 1st respondent that the Originating Summons be allowed in terms and (c) all other reasons set out in the 1st applicant's Affidavit No 1 of Lim Lee Ching and the 2nd applicant's Affidavit No 1 of Hong Boon Swee both affirmed on 29 May 2024.

[3] The applicants summarised the criteria for the granting of leave to institute derivative action(s) as decided in Dato' Seri Timor Shah Rafiq v. Nautilus Tug & Towage Sdn Bhd; [2024] 3 MLJ 433; [2024] 10 CLJ 757 as follows:

a. Common law derivative action has now been displaced by the statutory regime under the CA 2016 (see s 347(3) CA 2016) (para 19 of the Law Report).

b. However, common law principles on interpretation of "good faith" and "best interest of the company" within the meaning of s 348 will still be relevant and applicable in the appropriate