Lee Hishammuddin Allen & Gledhill

Lee Hishammuddin Allen & Gledhill

Malaysia

News and developments

[DISPUTE RESOLUTION] Special Alert: Court of Appeal Affirms High Court's Decision Against Former Group CEO of MARA Corporation Sdn Bhd for Breach of Director's and Fiduciary Duties

On 3.8.2026, the Court of Appeal dismissed the appeal by the former Group Chief Executive Officer of MARA Corporation Sdn Bhd (“MARA”), affirming the High Court’s decision.

On 20.5.2024, the High Court held that the Defendant had breached his contractual, fiduciary and statutory duties owed to MARA arising from the Defendant's conduct in hiring 25 employees, including appointing individuals to Senior Director / C-Suite positions, without the requisite authority and approval of MARA's Board of Directors. The High Court ordered the Defendant to pay damages of RM 3.4 million and to indemnify MARA for all expenses incurred and to be incurred arising from the 25 employees’ industrial actions if any liability is imposed against MARA.

The Court of Appeal found no appealable error in the High Court’s findings and held that the case did not warrant appellate interference. The Court of Appeal further ordered the Defendant to pay costs of RM 50,000 to MARA, subject to allocator.

MARA was represented by Partners Hoi Jack S’ng and Chng Keng Lung, together with Associates Irene Wong Oi Ling and Sarah Tham Yue Hui.

The Court of Appeal’s decision was also reported on The Star, Buletin TV3, Berita Harian, New Straits Times, Utusan Malaysia, Malay Mail, Harian Metro, The Edge Malaysia  and Free Malaysia Today.

If you have any queries, please contact Partners Hoi Jack S’ng ([email protected]) or Chng Keng Lung ([email protected]).