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in the court of appeal malaysia (appellate jurisdiction)

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In Kumagai Gumi Co Ltd v. Zenecon-Kumagai Sdn Bhd (1994) 2<br />

MLJ 789 Anuar J (as he <strong>the</strong>n was) at pp. 804 - 806 cited Re Tivoli Freeholds<br />

Ltd.:<br />

“In Re Tivoli Freeholds Ltd at p 452, Menhennitt J said:<br />

Whe<strong>the</strong>r or not a company is be<strong>in</strong>g conducted <strong>in</strong> a manner<br />

oppressive to certa<strong>in</strong> shareholders depends upon all <strong>the</strong><br />

circumstances and it is not possible to attempt a universal<br />

def<strong>in</strong>ition. However, <strong>in</strong> <strong>the</strong> k<strong>in</strong>d <strong>of</strong> situation which arises <strong>in</strong><br />

this case and hav<strong>in</strong>g regard to <strong>the</strong> matters relied upon by <strong>the</strong><br />

petitioner and <strong>the</strong> support<strong>in</strong>g members, <strong>the</strong> follow<strong>in</strong>g elements<br />

are I th<strong>in</strong>k <strong>in</strong>cluded <strong>in</strong> <strong>the</strong> matters postulated <strong>in</strong> <strong>the</strong> section and<br />

are also established by <strong>the</strong> authorities:<br />

(1) Those alleg<strong>in</strong>g that <strong>the</strong> affairs <strong>of</strong> <strong>the</strong> company have been<br />

conducted <strong>in</strong> a manner oppressive to <strong>the</strong>m must establish,<br />

as one element, conduct which <strong>the</strong> Court <strong>of</strong> Appeal has<br />

recently restated <strong>in</strong> <strong>the</strong> case <strong>of</strong> Re Jermyn Street Turkish<br />

Baths Ltd [1971] 1 WLR 1042 at p 1059, as conduct<br />

which is unfair or, to use <strong>the</strong> expression adopted by<br />

Viscount Simonds <strong>in</strong> Scottish Cooperative Wholesale<br />

Society Ltd v Meyer [1959] AC 324 at p 342,<br />

‘burdensome, harsh and wrongful’ to <strong>the</strong> o<strong>the</strong>r members<br />

<strong>of</strong> <strong>the</strong> company or some <strong>of</strong> <strong>the</strong>m and lacks that degree or<br />

probity which <strong>the</strong>y are entitled to expect <strong>in</strong> <strong>the</strong> conduct<br />

<strong>of</strong> <strong>the</strong> company’s affairs: see Scottish Co-operative<br />

Wholesale Society Ltd v Meyer and Re HR Harmer Ltd<br />

[1959] 1 WLR 62.<br />

It is to be noted that Buckley LJ, deliver<strong>in</strong>g <strong>the</strong> judgment<br />

<strong>of</strong> <strong>the</strong> <strong>court</strong>, appears to have stated lack <strong>of</strong> probity <strong>of</strong> <strong>the</strong><br />

k<strong>in</strong>d described as an element additional to <strong>the</strong><br />

requirement that <strong>the</strong> conduct must be unfair or<br />

burdensome, harsh and wrongful. In Scottish Cooperative<br />

Wholesale Society Ltd v Meyer, Lord Keith at p<br />

364, stated <strong>the</strong> test as ‘lack <strong>of</strong> probity and fair deal<strong>in</strong>g’,<br />

us<strong>in</strong>g <strong>the</strong> word ‘and’. However, <strong>in</strong> Lord Keith’s<br />

31

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