CLJ Logo
CLJ Bulletin, Issue 2012, Vol 33
17 August 2012

Print this page
Introduction:

To get the most out of this law bulletin join CLJ Law Online now - http://www.cljlaw.com/?page=subscription

Feel free to forward this to your colleagues. Get this bulletin as email by going to http://www.cljlaw.com/?page=bulletinsubscribe


New This Week

1. Case Of The Week

MASTERSKILL (M) SDN BHD v. SISTEM TELEVISYEN MALAYSIA BHD

2. Latest Cases

a) Legal Network Series

b) CLJ 2012 Volume 5 (Part 2)

3. Articles

a) Legal Network Series Articles

4. Legislation Highlights

a) Principal Acts

b) Amending Acts

c) PU(A)

d) PU(B)


CASE OF THE WEEK

MASTERSKILL (M) SDN BHD v. SISTEM TELEVISYEN MALAYSIA BHD
HIGH COURT MALAYA, KUALA LUMPUR
LEE SWEE SENG JC
[CIVIL SUIT NO: S-23-41-2010]
27 JUNE 2011

TORT: Defamation - News broadcast - Visuals of plaintiff's campus shown on television in relation to issue of colleges failing to comply with conditions set by Ministry of Higher Education - Whether impugned words defamatory - Whether impugned words and accompanying visuals capable of referring to plaintiff - Whether reasonable people would be led to conclude that it referred to plaintiff - Whether defence of qualified privilege applicable

TORT: Defamation - Defences - Qualified privilege - Whether news broadcast of public interest - Whether there was responsible journalism - Whether defence of qualified privilege or Reynolds' public interest privilege availed defendant

TORT: Defamation - Damages - Assessment of damages - Factors considered - Whether claim of general damages for RM100 million misplaced - Whether RM200,000 sufficient in circumstances of case - Aggravated damages - Whether to be allowed

LATEST CASES

Legal Network Series

[2009] 1 LNS 1761

WONG KIEW THIAM v. PP

CRIMINAL PROCEDURE: Appeal - Appeal against sentence - Cross appeal by Public Prosecutor against inadequacy of sentence - Statutory rape - Sufficiency of sentence passed by court below - Public interest - Unremorseful conduct of accused - Whether sentence imposed by court below appropriate - Whether any error to justify court interfering either by way of appeal or revision

[2010] 1 LNS 484

RAMAN KRP PERUMAL v. CHONG CHI VUI & ORS

LAND LAW: Indefeasibility of title and interests - Transfer - Transfer of ownership of land from donor to 2nd and 3rd defendants - Purported identification card of donor and power of attorney - Whether there was forgery in documents involved in registration of transfer of ownership

LAND LAW: Indefeasibility of title and interests - Registered owners - Forged transfer - Whether 2nd and 3rd defendants had knowledge of forgery or were bona fide purchasers for value - Whether 2nd and 3rd defendants' registered title over land indefeasible - National Land Code 1965, s. 340(1)(2)

[2010] 1 LNS 492

MALAYAN BANKING BHD v. TONYIN FAST FOOD SDN BHD & ORS

CONTRACT: Guarantee - Liability of - Whether plaintiff lost the security - Whether 2nd and 3rd defendants as guarantors discharged to the extent of loss of the security

EVIDENCE: Documentary evidence - Admissibility of - Statement of accounts - Failure to produce certificate - Whether statement of accounts inadmissible for non-compliance with s. 90A(2) of the Evidence Act 1950

LAND LAW: Assignment - Land assigned to financier - Whether plaintiff failed to obtain a letter of disclaimer from Public Bank Berhad (PBB), master chargee of land - Whether plaintiff obliged to obtain letter of disclaimer from PBB to exclude shop unit from charge

LAND LAW: Assignment - Land assigned to financier - Property included in foreclosure proceedings commenced by master chargee of land - Order for sale made - Whether plaintiff lost its security - Whether plaintiff could still exercise its contractual rights under Assignment and Power of Attorney to sell shop unit to realise security

[2011] 1 LNS 449

ESPHERE ENTERPRISE SDN BHD v. TEH LI LI & ORS

COMPANIES AND CORPORATIONS: Shares - Transfer of shares - Propriety of transfers - Whether transfer of plaintiff's shares to 1st and 2nd defendants wrong, unlawful and/or fraudulent - Whether plaintiff proved its claim beyond reasonable doubt

COMPANIES AND CORPORATIONS: Shares - Conversion - Ownership of shares - Whether defendants retained beneficial ownership of plaintiff's shares - Whether plaintiff proved its claim for conversion on a balance of probabilities

[2011] LNS 1 455

PP v. TUNG KOK KHENG

CRIMINAL PROCEDURE: Prosecution - prosecution's case - Prima facie case - Whether prosecution established a prima facie case of murder against accused - Criminal Procedure Code, s. 180

EVIDENCE: Identification evidence - Accused identified - Identification made by SP3 in alley - SP3 was drunk throughout the night - Whether SP3's identification evidence of accused satisfactory and reliable

EVIDENCE: Identification parade - Conduct of identification parade - Discrepancy in report - Failure to provide a list of where accused was standing vis-a-vis other participants in identification parade - Failure to record particulars of participants' age, height and appearance - Whether identification parade conducted in an unsatisfactory manner

EVIDENCE: Identification parade - Failure of witness to identify accused - Both SP3 and SP5 failed to identify accused in one of the identification parades - Whether serious doubt raised regarding identification of accused by SP3 and SP5 in the other identification parade

CLJ 2012 Volume 5 (Part 2)

COURT

COURT OF APPEAL

Chong Chee Chung v. Standard Chartered Bank Malaysia Bhd & Anor
Zainun Ali, Linton Albert, Aziah Ali JJCA
(Land Law - Order for sale - Setting aside - Application for - Caveat - Removal of) [2012] 5 CLJ 161 [CA]

Pioneer Haven Sdn Bhd v. Ho Hup Construction Company Bhd & Anor And Other Appeals
Zainun Ali, Ramly Ali, Zaharah Ibrahim JJCA
(Company Law; Words & Phrases - Directors - Disposal of company property by directors - Approval of shareholders at general meeting not obtained - "disposal" - Companies Act 1965, s. 132C(1)(b)) [2012] 5 CLJ 169 [CA]

Voo Nyuk Fah & Anor v. Lam Yat Kheong & Anor
Sulong Matjeraie, Azhar Ma'ah, Mohamed Apandi Ali JJCA
(Civil Procedure - Damages - Assessment of damages - Appeal against) [2012] 5 CLJ 229 [CA]

HIGH COURT

PP lwn. Dominic Lang
Kamardin Hashim H
(Prosedur Jenayah; Undang-Undang Jenayah - Hukuman - Rayuan terhadap hukuman - Kanun Keseksaan, s. 304 - Homisid salah yang tidak terjumlah kepada kesalahan membunuh) [2012] 5 CLJ 238 [HC]

PP v. Mohamad Sabu
Zamani A Rahim J
(Criminal Law; Criminal Procedure - Penal Code, s. 186 - Obstructing public servant in discharge of public functions - Charge - Framing of) [2012] 5 CLJ 246 [HC]

Siti Shamsiyah Ab Karim & Ors v. Melombong & Perumahan Sdn Bhd & Anor
Nik Hasmat Nik Mohamad JC
(Contract - Agreement - Sale and purchase agreement - Breach - Allegation of - Cause of action - Misrepresentation - Where there was a breach of contractual terms and collateral representation) [2012] 5 CLJ 261 [HC]

SUBJECT INDEX

CIVIL PROCEDURE

Damages - Assessment of damages - Appeal against - Whether trial judge acted on correct principles of law - Whether amount awarded appropriate - Whether assessment consistent with established judicial principles
Voo Nyuk Fah & Anor v. Lam Yat Kheong & Anor
(Sulong Matjeraie, Azhar Ma'ah, Mohamed Apandi Ali JJCA) [2012] 5 CLJ 229 [CA]

COMPANY LAW

Derivative action - Suit against directors - Test to be applied - Whether directors in control of general meeting - Alleged wrongdoers/directors already removed by time suit was commenced - Whether shareholder's derivative action misconceived
Pioneer Haven Sdn Bhd v. Ho Hup Construction Company Bhd & Anor And Other Appeals
(Zainun Ali, Ramly Ali, Zaharah Ibrahim JJCA) [2012] 5 CLJ 169 [CA]

Directors - Disposal of company property by directors - Approval of shareholders at general meeting not obtained - What amounts to 'disposal' - Directors entering into joint venture agreement with developer to develop company's land - Power of attorney given to developer - Whether there was substantive 'disposal' of company's land to developer - Whether beneficial ownership of land vested in developer - Whether majority shareholder has right to sue directors - Companies Act 1965, s. 132C(1)(b), (2) & (3)
Pioneer Haven Sdn Bhd v. Ho Hup Construction Company Bhd & Anor And Other Appeals
(Zainun Ali, Ramly Ali, Zaharah Ibrahim JJCA) [2012] 5 CLJ 169 [CA]

Directors - Fiduciary duties - Test to be applied - Whether a reasonable board of directors similarly circumstanced would have acted similarly - Whether directors acted in best interest of company and shareholders - Whether directors committed company to agreement in bad faith or for improper purpose - Business judgment - Companies Act 1965, ss. 132, 354(1)
Pioneer Haven Sdn Bhd v. Ho Hup Construction Company Bhd & Anor And Other Appeals
(Zainun Ali, Ramly Ali, Zaharah Ibrahim JJCA) [2012] 5 CLJ 169 [CA]

Members' rights - Proper plaintiff rule - Suit by shareholder against company's directors - Allegation that directors disposed of company's land in breach of fiduciary duties or for improper purpose - Whether shareholder the proper plaintiff to sue directors for company's alleged losses
Pioneer Haven Sdn Bhd v. Ho Hup Construction Company Bhd & Anor And Other Appeals
(Zainun Ali, Ramly Ali, Zaharah Ibrahim JJCA) [2012] 5 CLJ 169 [CA]

Members' rights - Rule against reflective loss - Suit by shareholder against company's directors for allegedly damaging value of his shareholding - Whether diminution in value of shareholder's shares merely a 'reflection' of company's loss - Whether shareholder's loss 'franked' by company's loss - Whether loss suffered by shareholder 'personal' and 'independent' - Whether shareholder has cause of action under common law
Pioneer Haven Sdn Bhd v. Ho Hup Construction Company Bhd & Anor And Other Appeals
(Zainun Ali, Ramly Ali, Zaharah Ibrahim JJCA) [2012] 5 CLJ 169 [CA]

CONTRACT

Agreement - Sale and purchase agreement - Breach - Allegation of - Cause of action - Whether there was locus standi - Whether second defendant privy to contract between plaintiff and first defendant - Whether first defendant an agent for second defendant - Whether second defendant liable for representations made by first defendant - Defendants failed to deliver luxury condominiums and did not conform to representation - Whether there was a breach of contractual terms and collateral representation - Whether plaintiffs succeeded in proving claim
Siti Shamsiyah Ab Karim & Ors v. Melombong & Perumahan Sdn Bhd & Anor
(Nik Hasmat Nik Mohamad JC) [2012] 5 CLJ 261 [HC]

Misrepresentation - Sale and purchase agreement - Defendants failed to deliver luxury condominiums and did not conform to representation - Whether there was a breach of contractual terms and collateral representation - Whether second defendant privy to contract between plaintiff and first defendant - Whether second defendant liable for representations made by first defendant
Siti Shamsiyah Ab Karim & Ors v. Melombong & Perumahan Sdn Bhd & Anor
(Nik Hasmat Nik Mohamad JC) [2012] 5 CLJ 261 [HC]

CRIMINAL LAW

Penal Code - Section 186 - Obstructing public servant in discharge of public functions - Ingredients - Proof - Mens rea - Whether mens rea a prerequisite of offence - Whether must be proved - Failure to incorporate words "voluntarily" and "in the discharge of his public functions" in charge - Whether fatal - Whether no offence disclosed
PP v. Mohamad Sabu
(Zamani A Rahim J) [2012] 5 CLJ 246 [HC]

CRIMINAL PROCEDURE

Charge - Framing of - Charge under s. 186, Penal Code - Obstructing public servant in discharge of public functions - Ingredients - Whether importing a requirement of mens rea - Omission to state mens rea - Whether charge substantially defective - Whether defect incurable - Penal Code, s. 186 - Criminal Procedure Code, s. 422
PP v. Mohamad Sabu
(Zamani A Rahim J) [2012] 5 CLJ 246 [HC]

LAND LAW

Caveat - Removal of - Application for - Whether there was valid ground for appellant's lodged caveat to remain
Chong Chee Chung v. Standard Chartered Bank Malaysia Bhd & Anor
(Zainun Ali, Linton Albert, Aziah Ali JJCA) [2012] 5 CLJ 161 [CA]

Order for sale - Setting aside - Application for - Bank sold appellant's loan account to Syarikat Mystic Bay by vesting order - Whether all proceedings in relation to appellant's loan to continue as if Mystic Bay a party in place of bank - Whether appellant had no outstanding debt with bank - Whether appellant liable to settle debt - Whether there was no basis for order for sale to be set aside - Banking and Financial Institutions Act 1989, s. 50(3)
Chong Chee Chung v. Standard Chartered Bank Malaysia Bhd & Anor
(Zainun Ali, Linton Albert, Aziah Ali JJCA) [2012] 5 CLJ 161 [CA]

WORDS & PHRASES

"disposal" - Companies Act 1965, s. 132C(1)(b) - What amounts to "disposal of a substantial portion of the company's undertaking or property" - Whether legal and beneficial ownership of property must pass - Directors entering into joint venture agreement with developer to develop company's land and executing power of attorney in favour of developer - Whether amounts to substantive 'disposal' of land
Pioneer Haven Sdn Bhd v. Ho Hup Construction Company Bhd & Anor And Other Appeals
(Zainun Ali, Ramly Ali, Zaharah Ibrahim JJCA) [2012] 5 CLJ 169 [CA]

"from entering into a transaction" - Companies Act 1965, s. 132C(2) - Power of court to restrain company directors 'from entering into a transaction' in contravention of s. 132C(1) - Transaction or agreement already 'executed' - Whether pre-emptory power in s. 132C(2) still exercisable
Pioneer Haven Sdn Bhd v. Ho Hup Construction Company Bhd & Anor And Other Appeals
(Zainun Ali, Ramly Ali, Zaharah Ibrahim JJCA) [2012] 5 CLJ 169 [CA]

"shall not carry into effect any arrangement or transaction" - Companies Act 1965, s. 132C(1) - Comparison with prior version "shall not carry into effect any proposal or execute any transaction" - Whether amendment means directors can now 'enter' into agreements without shareholders' approval but merely cannot 'implement' them
Pioneer Haven Sdn Bhd v. Ho Hup Construction Company Bhd & Anor And Other Appeals
(Zainun Ali, Ramly Ali, Zaharah Ibrahim JJCA) [2012] 5 CLJ 169 [CA]

INDEKS PERKARA

PROSEDUR JENAYAH

Pertuduhan - Pertuduhan alternatif - Tertuduh mengaku bersalah - Sama ada tertuduh patut diberikan diskaun pertuduhan atas akuan bersalah - Budibicara mahkamah - Faktor-faktor yang diambilkira dalam penghukuman
PP lwn. Dominic Lang
(Kamardin Hashim H) [2012] 5 CLJ 238 [HC]

UNDANG-UNDANG JENAYAH

Hukuman - Rayuan terhadap hukuman - Kanun Keseksaan, s. 304 - Homisid salah yang tidak terjumlah kepada kesalahan membunuh - Tertuduh mengaku bersalah - Sama ada hukuman sejajar dengan kesalahan
PP lwn. Dominic Lang
(Kamardin Hashim H) [2012] 5 CLJ 238 [HC]

ARTICLE
LEGISLATION HIGHLIGHTS

Principal Acts

Number Title Date coming into force Repealing
ACT 748 Malaysian Institute of Road Safety Research Act 2012 15 July 2012
[PU(B) 219/2012]
-Nil-
ACT 749 Mediation Act 2012 1 August 2012
[PU(B) 252/2012]
-Nil-
ACT 750 Territorial Sea Act 2012 22 June 2012
[Section 1(2) of the Act]
The Act applies throughout Malaysia
-Nil-
ACT 751 Rukun Tetangga Act 2012 22 June 2012
[Section 1(2) of the Act]
-Nil-
ACT 752 Malaysia Volunteers Corps Act 2012 22 June 2012
[Section 1(2) of the Act]
-Nil-

Amending Acts

Number Title Date coming into force Principal/Amending Act No
ACT A1433 Universities and University Colleges (Amendment) Act 2012 1 August 2012
[PU(B) 257/2012]
ACT 30
ACT A1434 Private Higher Educational Institutions (Amendment) Act 2012 1 August 2012
[PU(B) 258/2012
ACT 555
ACT A1435 Educational Institutions (Discipline) (Amendment) Act 2012 1 August 2012
[PU(B) 259/2012]
ACT 174
ACT A1436 Printing Presses and Publications (Amendment) Act 2012 15 July 2012
[PU(B) 223/2012]
ACT 301
ACT A1437 Capital Markets and Services (Amendment) Act 2012 Not Yet In Force ACT 671

PU(A)

Number Title Date of Publication Date coming into force Principal/Amending Act No
PU(A) 244/2012 Service Tax (Amendment) Regulations 2012 8 August 2012 31 January 2011 ACT 151
PU(A) 245/2012 National Speed Limit (Temporary Cessation) (No. 2) Order 2012 8 August 2012 12 August 2012
to 26 August 2012
ACT 333
PU(A) 246/2012 Control Of Supplies (Controlled Articles) (No. 4) Order 2012 8 August 2012 12 August 2012 ACT 122
PU(A) 247/2012 Customs (Values) (Crude Petroleum Oil) (No. 17) Order 2012 9 August 2012 9 August 2012
to 22 August 2012
ACT 235
PU(A) 249/2012 Price Control And Anti-Profiteering (Price Marking Of Price-Controlled Goods) Order 2012 9 August 2012 12 August 2012
to 26 August 2012
ACT 723

PU(B)

Number Title Date of Publication Date coming into force Principal/Amending Act No
PU(B) 264/2012 Notice Under Section 13 Of The Islamic Banking Act 1983 6 August 2012 6 August 2012 ACT 276
PU(B) 265/2012 Appointment Of Protection Officers Of The Anti-Trafficking In Persons And Anti-Smuggling Of Migrants Act 2007 6 August 2012 6 August 2012 ACT 670
PU(B) 266/2012 Notice To Third Parties Of The Anti-Money Laundering And Anti-Terrorism Financing Act 2001 6 August 2012 6 August 2012 ACT 613
PU(B) 267/2012 Declaration Of Authorized Point Of Entry And Landing Place For Entry By Sea (Tanjung Bin, Pontian, Johor) Of The Immigration Act 1959/63 7 August 2012 7 August 2012 ACT 155
PU(B) 268/2012 Prescription Of Approved Routes And Declaration Of Immigration Control Posts Of The Immigration Act 1959/63 7 August 2012 7 August 2012 ACT 155