High Court Rules Against Former Group CEO Of MARA Corporation Sdn Bhd for Breach of Director’s and F

In 2021, MARA Corporation Sdn Bhd (“MARA”) filed a claim against the Defendant for breach of director’s and fiduciary duties as MARA’s former Group Chief Executive Officer. The Defendant was suspended two months after his appointment due to his breaches in, among others, the hiring of 25 employees within two weeks of taking office. MARA had to terminate the 25 employees and incurred losses of approximately RM 3.4 million due to the payment of salaries to, and compensation for termination of, the 25 employees.

On 20.5.2024, the High Court allowed MARA’s claim and ordered the Defendant to pay damages of RM3.4 million. The High Court also ordered the Defendant 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.

MARA was represented by Partners Hoi Jack S’ng, Chng Keng Lung, Shaleni R Anpualagan, and Associate Teo Kah Min.

The High Court’s decision was also reported on The Edge Malaysia.

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