In the recent decision of Mak Siew Wei v Yeoh Eng
Kong & Other Appeals [2019] 7 CLJ 470 ("Mak Siew
Wei"), the Malaysian Court of Appeal had the opportunity
to consider whether it is appropriate for a shareholder to sue in
his personal capacity for losses he had suffered personally, and
also on behalf of the company for losses suffered by the company by
way of a derivative action, both in the same suit. In other words,
can both a shareholder's personal action and a derivative
action be brought under the same suit?
The question posed to the Court of Appeal in Mak Siew Wei
is closely linked to the principle of reflective loss. Reflective
loss is one suffered by a shareholder which is merely reflective of
the company's loss, such as where the shareholder's loss is
a diminution in the value of his shares as a result of a wrong
committed against the company.
