LEE LAY KIN (TRADING AS SIMON BEADING & MACHINERY ENTERPRISE) v FOO WAN YUNG [2022] 9 MLJ 203

Kenneth St James JC (Georgetown High Court, Penang)

The case revolves around Section 540(1) of the Companies Act 2016, which allows for personal liability for individuals knowingly involved in fraudulent business practices. The plaintiff claims the defendant, as sole director, conducted business fraudulently to avoid paying a judgment debt from a prior lawsuit involving unpaid leasing of machines. The defendant moved the court to strike out this second suit, arguing lack of privity of contract and res judicata, but the court rejected these arguments, noting that this suit is based on statutory tort under Section 540(1), a different cause of action from the first. The court then ordered the case to go for a full trial.

Marcus represented the Defendant.