in the court of appeal malaysia (appellate jurisdiction)
in the court of appeal malaysia (appellate jurisdiction)
in the court of appeal malaysia (appellate jurisdiction)
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12. Pursuant to <strong>the</strong> Jo<strong>in</strong>t Venture Agreement <strong>the</strong> Petitioner’s<br />
wholly owned subsidiary company, Sunyap Development<br />
Sdn Bhd (Co. No. 67231-M) also subleased <strong>the</strong> Premises<br />
at a special rent to <strong>the</strong> 1 st Respondent.<br />
THE FIDUCIARY RELATIONSHIP BETWEEN THE<br />
PETITIONER AND THE 2 ND RESPONDENT<br />
13. The jo<strong>in</strong>t venture relationship between <strong>the</strong> Petitioner and<br />
<strong>the</strong> 2 nd Respondent was ak<strong>in</strong> to partners <strong>in</strong> a jo<strong>in</strong>t venture<br />
bus<strong>in</strong>ess under <strong>the</strong> corporate umbrella <strong>of</strong> <strong>the</strong> 1 st<br />
Respondent.<br />
THE AFFAIRS AND CONDUCT OF THE 1 ST<br />
RESPONDENT<br />
Alleged Advance <strong>of</strong> RM3.78 million by <strong>the</strong> 2 nd Respondent and<br />
<strong>the</strong> <strong>in</strong>terests charged.<br />
14. The issue <strong>of</strong> <strong>the</strong> alleged advance <strong>of</strong> RM3.78 was first<br />
brought up to <strong>the</strong> board <strong>of</strong> directors at its meet<strong>in</strong>g on<br />
18.6.2003 that as at 31.5.2003 <strong>the</strong> Ngiu Kee Group (<strong>of</strong><br />
which <strong>the</strong> 2 nd Respondent is a part <strong>of</strong>) had advanced an<br />
amount <strong>of</strong> RM3.78 million to <strong>the</strong> 1 st Respondent for <strong>the</strong><br />
repayment to its suppliers. This issue was subsequently<br />
addressed at <strong>the</strong> board <strong>of</strong> directors meet<strong>in</strong>g <strong>of</strong> <strong>the</strong> 1 st<br />
Respondent on 26.9.2003.<br />
15. It was <strong>the</strong>n unanimously agreed on 17.11.2003 by <strong>the</strong><br />
entire board <strong>of</strong> directors <strong>of</strong> <strong>the</strong> 1 st Respondent, which<br />
<strong>in</strong>cluded both <strong>the</strong> representatives <strong>of</strong> <strong>the</strong> Petitioner and <strong>the</strong><br />
2 nd Respondent that <strong>the</strong> management <strong>of</strong> <strong>the</strong> 1 st<br />
Respondent be <strong>in</strong>structed to request <strong>the</strong> proposed auditors<br />
to <strong>in</strong>clude <strong>the</strong> verification <strong>of</strong> <strong>the</strong> said advance <strong>of</strong> RM3.78<br />
million and <strong>the</strong> alleged stock losses as part and parcel <strong>of</strong><br />
<strong>the</strong> forthcom<strong>in</strong>g annual audit for <strong>the</strong> f<strong>in</strong>ancial year<br />
end<strong>in</strong>g 31.12.2003 subject to a fee which is acceptable to<br />
<strong>the</strong> board <strong>of</strong> directors, and if <strong>the</strong> fee is too high, ano<strong>the</strong>r<br />
<strong>in</strong>dependent audit firm to be agreed upon by <strong>the</strong> parties<br />
be appo<strong>in</strong>ted.<br />
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