Decision to determine whether challenge to quia timet injunction proceeds to full hearing
By TENGKU NOOR SHAMSIAH TENGKU ABDULLAH
KUCHING, May 13 – The High Court here has fixed May 20 to deliver its decision on preliminary objections in a legal dispute involving Cahya Mata Sarawak Berhad and Mahmud Abu Bekir Taib.
The matter came before Kuching High Court Judge Dato’ Faridz Gohim Abdullah today.
Cahya Mata Sarawak was represented by Alvin Chong & Partners Advocates, while Mahmud was represented by Sandhu & Co Advocates.
The court directed that responses to the preliminary objections be filed by May 18, with replies, if any, due by May 19. The decision is scheduled to be delivered at 9am on May 20.
The dispute began on April 2, when Mahmud, a director of Cahya Mata Sarawak filed an originating summons at the High Court following his redesignation within the company’s board structure amid ongoing boardroom disagreements.
He is seeking court declarations over his rights as a board member, including confirmation of his right to attend and participate in board meetings, as well as clarification on when he must recuse himself from discussions involving matters in which he is said to have a conflict of interest.
He is also challenging his exclusion from certain board and committee meetings, and is seeking access to past board meeting minutes, as well as directions on how future board agendas should be structured when legal matters are involved.
On April 30, Cahya Mata Sarawak obtained an ex parte quia timet injunction to restrain Mahmud from filing, starting, or continuing a proposed derivative action against the company.
A derivative action allows a shareholder to sue on behalf of a company, typically where it is alleged that the company has suffered losses arising from actions or decisions of its board.
That injunction is now being challenged through preliminary objections, which the court must determine before proceeding to the main injunction hearing.
The High Court will deliver its decision on May 20, which will determine the next step in the proceedings.
- TNS NEWS