Shareholder Disputes

 Shareholder Disputes

Disputes between shareholders & directors frequently occur in the corporate landscape, causing disruption to the running of the company and damaging businesses’ ability to function. Malaysia is entering a new era on how directors and shareholders disputes are defined and arbitrated following the revamp and introduction of the Companies Act 2016.

Thomas Philip regularly advises directors and shareholders as to their position and statutory remedies available to them when disputes arise. Our Corporate & Commercial team has in-depth knowledge in navigating the complexities of contentious corporate matters, and will provide you advice tailored to your specific needs towards achieving your goals in an expeditious, proactive and cost effective way.

Our lawyers are frequently engaged to represent clients in complex shareholder disputes, such as:

  • Acting for shareholders in winding up actions against a private limited company under just and equitable grounds. Value of the company was in excess of RM400 million.

  • Acting for majority shareholders in a dispute with minority shareholders over the strategic direction of a worldwide manufacturer and supplier of production line equipment.

  • Obtaining an injunction preventing majority shareholders from voting, contrary to a voting agreement, to dilute a minority shareholder.

  • Defending a former General Manager of a statutory body for allegations of breach of fiduciary, statutory and common law duties concerning a subject matter of over RM4 million.

  • Representing a company in liquidation against its former directors for breach of fiduciary duties, misappropriation of funds and unauthorized payments. Successfully obtained judgment of RM2.3 million against the director.

  • Representing minority shareholders in presenting winding up petitions against various private limited companies under just and equitable grounds which also included applications for the appointment of provisional and private liquidators.