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in the court of appeal malaysia (appellate jurisdiction)

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In Dato’ Toh Kim Chuan v. Swee Construction and Transport<br />

Company (Malaya) Sdn Bhd [1996] 1 MLJ 730 Mohd Ghazali J (as he <strong>the</strong>n<br />

was) at pp. 748 - 749 said:<br />

“From my read<strong>in</strong>g <strong>of</strong> <strong>the</strong> circumstances forwarded by <strong>the</strong><br />

petitioner, <strong>the</strong> oppression that he was compla<strong>in</strong><strong>in</strong>g about seems<br />

to relate more towards <strong>the</strong> directors <strong>of</strong> <strong>the</strong> respondent company<br />

ra<strong>the</strong>r than towards <strong>the</strong> affairs <strong>of</strong> <strong>the</strong> respondent company itself.<br />

From <strong>the</strong> facts, I ga<strong>the</strong>r that <strong>the</strong> petitioner and a few directors<br />

and shareholders <strong>of</strong> <strong>the</strong> respondent company are from <strong>the</strong> same<br />

family. The petitioner has contended that <strong>the</strong> respondent<br />

company <strong>in</strong> essence is managed by three directors, namely,<br />

TBC, <strong>the</strong> said Toh Kian Boon and one Toh Keng Gee. He<br />

claimed that he played a significant role <strong>in</strong> <strong>the</strong> respondent<br />

company for over 30 years and that he had cont<strong>in</strong>ued to serve<br />

<strong>the</strong> company until his employment was term<strong>in</strong>ated on 15 June<br />

1994. In his affidavit <strong>in</strong> support <strong>of</strong> <strong>the</strong> petition, he did not<br />

specifically state that he was its chief executive and had chaired<br />

several meet<strong>in</strong>gs relat<strong>in</strong>g to <strong>the</strong> transaction over <strong>the</strong> said land<br />

but only said so when TBC alleged <strong>in</strong> his affidavit that he had<br />

failed to disclose ‘fully and frankly’ all <strong>the</strong> facts. In reply, <strong>the</strong><br />

petitioner expla<strong>in</strong>ed that be<strong>in</strong>g <strong>the</strong> elder bro<strong>the</strong>r <strong>of</strong> <strong>the</strong> family,<br />

he was <strong>in</strong>vited to chair most <strong>of</strong> <strong>the</strong> meet<strong>in</strong>gs but contended that<br />

‘he believed that he was only <strong>in</strong>formed <strong>of</strong> <strong>the</strong> facts that <strong>the</strong>y<br />

wish to let him know’.<br />

As stated earlier, what needs to be determ<strong>in</strong>ed by <strong>the</strong> <strong>court</strong> is<br />

whe<strong>the</strong>r <strong>the</strong> petitioner has brought himself with<strong>in</strong> <strong>the</strong> scope <strong>of</strong> s<br />

181(1) <strong>of</strong> <strong>the</strong> Act. What is <strong>the</strong> scope <strong>of</strong> s 181(1)? In The Law<br />

<strong>of</strong> Company Liquidation by J O’Donovan (3 rd Ed), which was<br />

referred to <strong>in</strong> <strong>the</strong> submission <strong>of</strong> counsel for <strong>the</strong> respondent<br />

company, <strong>the</strong> learned author said (at pp 141-142) that relief<br />

under s 320 <strong>of</strong> <strong>the</strong> Australian Companies Act (which is <strong>the</strong><br />

equivalent <strong>of</strong> s 181 <strong>of</strong> our Act) is available to any member <strong>of</strong> a<br />

company who compla<strong>in</strong>s that its affairs are be<strong>in</strong>g conducted <strong>in</strong><br />

a manner which is oppressive to one or more <strong>of</strong> <strong>the</strong> members,<br />

<strong>in</strong>clud<strong>in</strong>g himself and that <strong>the</strong> second requirement is that it<br />

must be <strong>the</strong> affairs <strong>of</strong> <strong>the</strong> company itself which are conducted <strong>in</strong><br />

40

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