Saneran Suhendran JC:

GROUNDS OF JUDGMENT

INTRODUCTION

[1]This application raises an important issue for which, as advised by Counsel, there is no reported decision in Malaysia. The issue is whether shareholders have a sufficient interest in a judicial management application (“JMA”) so as to give them a right to be heard thereon and thus, a right to intervene.

[2]On the application of the Proposed Intervener to intervene in the JMA (“the Intervener NoA”), I granted the application. These are my reasons.

[3]The issue must be seen in the context of the interests of shareholders and creditors in a company in or verging on insolvency. This is necessary as s. 404(a) and (b) of the Companies Act 2016(“the Act”) provides that a JMA may only be made to Court on the pre-conditions that, inter alia, the company or a creditor considers that the company is or will be unable to pay its debts and there is a reasonable probability of rehabilitation or that the interests of the creditors would be better served than resorting to a winding up.

[4]Insolvency and rehabilitation are therefore the key drivers of a JMA and shareholder rights should be examined in this context. It may also be useful to examine