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in the court of appeal malaysia (appellate jurisdiction)

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A No<br />

Q Why not<br />

A When <strong>the</strong>y resigned, new people were recruited to<br />

replace <strong>the</strong>ir position and because jv partner not<br />

happy with this arrangement salaries were no<br />

longer charged to 1 st respondent. 3 staff resigned<br />

probably 2002 or whatever.<br />

If anyth<strong>in</strong>g, it shows that unless <strong>the</strong> Petitioner is constantly on<br />

<strong>the</strong> alert about how <strong>the</strong> 2 nd Respondent dealt with <strong>the</strong> accounts<br />

<strong>in</strong>clud<strong>in</strong>g how it charged <strong>the</strong> Company with expenses, <strong>the</strong><br />

expenses may simply be loaded to <strong>the</strong> disadvantage <strong>of</strong> <strong>the</strong><br />

Company and thus affects <strong>the</strong> bottom l<strong>in</strong>e <strong>of</strong> <strong>the</strong> account <strong>of</strong> <strong>the</strong><br />

Company. The fact that <strong>the</strong> 2 nd Respondent had stopped do<strong>in</strong>g<br />

so, that is charg<strong>in</strong>g <strong>the</strong> Company <strong>the</strong> salaries <strong>of</strong> <strong>the</strong> staffs<br />

employed by <strong>the</strong> 2 nd Respondent, is a clear admission that it<br />

was wrong to do so <strong>in</strong> <strong>the</strong> first place. The so-called pro rata<br />

shar<strong>in</strong>g <strong>of</strong> <strong>the</strong> expenses, as expla<strong>in</strong>ed by <strong>the</strong> 3 rd Respondent, do<br />

not hold water simply because what <strong>the</strong> 2 nd Respondent alleged<br />

<strong>the</strong>y were do<strong>in</strong>g to justify load<strong>in</strong>g <strong>the</strong> salaries onto <strong>the</strong><br />

Company was already provided for <strong>in</strong> <strong>the</strong> form <strong>of</strong> payment <strong>of</strong> a<br />

fee <strong>of</strong> 1% based on <strong>the</strong> turnover <strong>of</strong> <strong>the</strong> Company by <strong>the</strong><br />

Petitioner to <strong>the</strong> Respondent which worked out to be<br />

RM300,000 <strong>in</strong> one year and RM450,000 <strong>in</strong> ano<strong>the</strong>r year. S<strong>in</strong>ce<br />

<strong>the</strong> explanation was obviously untenable, it would have been a<br />

waste <strong>of</strong> time to exam<strong>in</strong>e <strong>the</strong> 3 rd Respondent on this po<strong>in</strong>t when<br />

she testified and <strong>the</strong>refore that fact that she was not questioned<br />

on this does not mean that what was done was right when it was<br />

admittedly wrong <strong>in</strong> <strong>the</strong> 2 nd Respondent discont<strong>in</strong>u<strong>in</strong>g such<br />

load<strong>in</strong>g <strong>of</strong> salary expenses onto <strong>the</strong> Company.<br />

(3) Us<strong>in</strong>g Company’s staff to look after Lawas store <strong>of</strong> 2 nd<br />

Respondent<br />

Aga<strong>in</strong> <strong>the</strong>re is no dispute that a staff paid for by <strong>the</strong> Company<br />

was made use <strong>of</strong> to look after <strong>the</strong> Lawas store <strong>of</strong> <strong>the</strong> 2 nd<br />

Respondent <strong>in</strong> which <strong>the</strong> Company has no <strong>in</strong>terest. But 3 rd<br />

Respondent was dismissive <strong>of</strong> <strong>the</strong> issue by say<strong>in</strong>g that: “Too<br />

small an amount to make it an issue.” It was also revealed that<br />

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