ALASAN PENGHAKIMAN

This is an application by the plaintiffs seeking orders of contempt against the1st defendant to this suit and one Ng Meau Chew, who at the material time is a director and company secretary of the 5th defendant, a locally incorporated company. The 1st defendant is also a director of the 5th defendant.

Background:

On 24 September 1996 the plaintiffs filed an originating summons against the defendants praying, inter alia, for the following -

(1) an order that the register of members of the 5th defendant be rectified by the removal therefrom the names of the 1st and 2nd defendants;

(2) a declaration that the appointment of the 1st and 2nd defendantsas directors of the 5th defendant is null and void.

On 2 December 1996 the court ordered that the proceedings be continued as if the matter had been begun by writ and consequently on 28 December 1996 the plaintiffs filed theirstatement of claim praying for the following orders -

(1) a declaration that the plaintiffs are the legal and beneficial owners of the shares of the 5th defendant as follows:

(2) an order that the register of members of the 5th defendantbe rectified to include the names of the plaintiffs as registered members of the 5th defendant in accordance with the schedule above;

(3) an order that the 1st to the 5th defendants (inclusive), their officers, servantsor agents, in possession of the certificates to the shares do deliver the same to the appropriate plaintiffs in accordance with the schedule above;

(4) in the alternative to prayer (3) above, to cancel the certificatesto the shares and to issue new share certificates in respect of the shares to the appropriate plaintiff in accordance with the schedule above;

(5) further or in the alternative thereto, that the 1st and/or the 2nd defendantdo pay to the plaintiffs damages for conversion of the shares belonging to the plaintiffs and wrongfully converted by the 1st and/or 2nd defendants;

(6) a declaration that the 1st and 2nd defendants are not the legal andbeneficial owners of share certificates Nos. A008 and A007 respectively in the 5th defendant;

(7) an order that the register of members of the 5th defendant be rectified to delete the names of the 1st and 2nd defendantsas holders of share certificates Nos. A008 and A007 respectively;

(8) a declaration that the 1st and 2nd defendants are not directors of the 5th defendant.

On 2 July 1997 the plaintiffs obtainedan interlocutory order from the court (hereafter referred to as “the Order”) which inter alia restrain the defendants from doing certain acts until further order or until the disposal of the suit: The Order read -

“... ADALAH DIPERINTAHKAN bahawa:-

1. Defendan Pertama, Kedua, Ketiga danKeempat biarpun secara sendirian atau agen, wakil atau nomini dihalang daripada sebarangan cara menghapuskan (dissipate) aset atau pendapatan Defendan Kelima biarpun secara serahak, jualan, pindahan atau lupusan bagaimana diefekkan atau sebarang gadaian,gadaijanji (mortgage), ikrar (pledge) aset atau pendapatan Defendan Kelima sebagai sekuriti untuk sebarang transaksi atau mengambil sebarang tindakan di mana tindakan tersebut akan memudaratkan hak Defendan Kelima sehingga perintah selanjutnya atau penyelesaiansepenuhnya perkara ini;

2. DAN ADALAH DIPERINTAHKAN bahawa kesemua pendapatan kepada Defendan Kelima dibayar ke dalam dan dipegang dalam akaun DefendanKelima subjek kepada pembelanjaan yang akan diperlukan untuk dibayar bagi mengendalikan Defendan Kelima dengan persetujuan Plaintif-Plaintif dan kebebasan untuk memohon kepada Mahkamah sekiranya pihak-pihak berkenaan tidak bersetuju di atas apa-apapembelanjaan yang diperlukan.

3. DAN ADALAH DIPERINTAHKAN SELANJUTNYA bahawa Defendan Pertama dan Kedua, biarpun secara sendirian bersesama dan berasingan,agen dan