In Dato’ Seri Timor Shah Rafiq v Nautilus Tug &
Towage Sdn Bhd [2019] MLJU 405, the High Court considered for
the first time the new section 41A of Malaysia’s Arbitration
Act 2005 (“Arbitration Act“), and its
application to non-parties to an arbitration.
Background
In the context of a shareholders’ dispute, the
plaintiff-director of the defendant company applied for leave to
commence derivative proceedings against the defendant company. The
defendant company objected to the production of two documents
annexed to the plaintiff’s affidavit supporting the
application. These documents were originally produced for the
purpose of arbitration proceedings between the defendant company
and its corporate shareholders, Nautical Supreme Sdn Bhd (to which
the plaintiff is a director) and Azimuth Marine Sdn Bhd.