JUDGMENT

Nallini Pathmanathan JCA:

Introduction

[1] This is an appeal by Soh Chee Gee ('the defendant') against the decision of the High Court in allowing the claim against him filed by his former employer, Syn Tai Hung Trading Sdn Bhd ('the plaintiff') premised on the tort of breach of fiduciary duty in the course of the defendant's employment as the plaintiff's Chief Executive Officer ('CEO'). The plaintiff contended that the defendant's failure to adhere to the plaintiff's credit policy had caused loss to the plaintiff company. The High Court agreed with the plaintiff's submissions and awarded damages to the plaintiff.

[2] We dismissed the defendant's appeal and affirmed the finding of the High Court that the defendant had breached the fiduciary duty which he owed to the plaintiff company in his capacity as the CEO. However, we varied the decision of the High Court in that we disallowed the loss claimed in the sum of RM16 million odd because we found that the plaintiff had not succeeded in proving the same. The defendant sought leave to appeal to the Federal Court. We therefore set out the reasons for our decision below.

[3] The salient facts as set out below are largely ad