Boustead Holdings Sues Ex-Chairman, Five Others for £6.4M for Breach of Fiduciary Duty

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Boustead Holdings Berhad has filed a suit against its former chairman Tan Sri Mohd Ghazali Che Mat, its ex-managing director Tan Sri Che Lodin Wok Kamaruddin and four others for alleged breach of fiduciary duty under the Companies Act.

The company, as the sole plaintiff, filed the suit on June 29 this year through Messrs Christopher & Lee Ong.

Besides Mohd Ghazali and Che Lodin, the company also named former directors Datuk Azzat Kamaluddin, Datuk Tan Leh Kiah, Datuk Seri Ghazali Mohd Ali and Datuk Wira Dr Megat Abdul Rahman Megat Ahmad as defendants.

In its writ of summons, the company is seeking declarations that the defendants are jointly and severally negligent, having breached their fiduciary obligations as directors and/or officers of the company under the Companies Act 1965 and/or the Companies Act 2016.

Boustead Holdings is also seeking a declaration that the defendants jointly and severally should pay the sum of £6.4 million (RM35.2 million) to the plaintiff or other sum deemed fit by the court to be paid in the ringgit Malaysia equivalent as of the date of payment.

The plaintiff is further seeking equitable compensation, general damages, exemplary damages, aggravated and punitive damages, costs and other relief deemed necessary by the court.

The case was fixed for case management today before Civil High Court Judge Datin Rohani Ismail, who decided to transfer it to the Commercial High Court.