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2019 MarsdenLR 3257
HIGH COURT MALAYA KUALA LUMPUR
KUMARAISEN SUBACHANDRAGOPAL – Appellant
Versus
PRABAGAR SEGADEVAN & ORS – Respondent
[Originating Summons No: WA-24NCC-523-10/2018]
The refusal of a director to sign draft accounts does not constitute oppressive conduct unless it directly disregards the member's interest in their capacity as a shareholder.
Headnote:This case involves an application invoking Section 346 of the Companies Act 2016 regarding alleged oppressive conduct by the directors of the 3rd Defendant. The Plaintiff accused the 1st Defendant of not signing financial documents and failing to contribute financially. The Court found that the refusal to sign draft accounts did not constitute oppression as per the legal definitions. The judgment concluded with the dismissal of the Plaintiff's application.
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| 1. alleged oppression concerning company operations. (Para 1) |
[1] The 3rd Defendant is a registered company with a restaurant at the Hotel Grand Blue Wave, Lobby Level, 9R, Jalan Bukit Meldrum, 80300 Johor Bahru, Johore. The shareholders of the 3rd Defendant are the Plaintiff and the 1st Defendant. Each owns 250,000 shares in the 3rd Defendant. The Plaintiff and the 1st Defendant are also directors of the 3rd Defendant together with the 2nd Defendant. The Plaintiff had several complaints about the 3rd Defendant. The Plaintiff claimed that these amounted to oppression. As such, this Originating Summons was filed invoking s 346 of the Companies Act 2016 . Although cited as parties and served, the 2nd and 3rd Defendants took no part in the proceedings and were not represented.
