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in the court of appeal malaysia (appellate jurisdiction)

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an oppressive manner. The learned author <strong>the</strong>n went on to say<br />

at pp 143-144):<br />

It has frequently been stressed that s 320 is not <strong>in</strong>tended<br />

to provide m<strong>in</strong>ority shareholders with a means <strong>of</strong><br />

stultify<strong>in</strong>g <strong>the</strong> vot<strong>in</strong>g power <strong>of</strong> <strong>the</strong> majority: .…<br />

The mere use <strong>of</strong> vot<strong>in</strong>g power at board meet<strong>in</strong>gs or at a<br />

general meet<strong>in</strong>g to secure <strong>the</strong> pass<strong>in</strong>g <strong>of</strong> resolutions<br />

which <strong>the</strong> o<strong>the</strong>r members <strong>of</strong> <strong>the</strong> board or shareholders<br />

oppose, would not <strong>in</strong> general constitute oppression for<br />

<strong>the</strong> purpose <strong>of</strong> <strong>the</strong> section or for any o<strong>the</strong>r purpose. For a<br />

petition to succeed it must be shown that <strong>the</strong>re has been<br />

oppression <strong>in</strong> a real sense <strong>of</strong> members qua shareholders,<br />

and not merely a subord<strong>in</strong>ation <strong>of</strong> <strong>the</strong>ir wishes to <strong>the</strong><br />

power <strong>of</strong> <strong>the</strong> vot<strong>in</strong>g majority (Re Harmer Ltd [1959] 1<br />

WLR 62 at p 87 per Romer LJ).<br />

Hence, it does not constitute oppression for those <strong>in</strong><br />

control to <strong>in</strong>sist upon <strong>the</strong> adoption <strong>of</strong> a policy on a matter<br />

<strong>of</strong> bus<strong>in</strong>ess on which <strong>the</strong>re may be legitimate differences<br />

<strong>of</strong> op<strong>in</strong>ion, nor is it oppression if an exist<strong>in</strong>g state <strong>of</strong><br />

<strong>in</strong>equality results from <strong>the</strong> provisions <strong>of</strong> <strong>the</strong> constitution<br />

<strong>of</strong> <strong>the</strong> company and not from any action on <strong>the</strong> part <strong>of</strong><br />

those <strong>in</strong> control.<br />

The word ‘oppressive’ was def<strong>in</strong>ed <strong>in</strong> Re Harmer Ltd<br />

(referred to above) to mean ‘burdensome, harsh and<br />

wrongful’.<br />

In Elder & Ors v Elder & Watson Ltd (1952) SLT 112, with<br />

regard to <strong>the</strong> phrase oppressive to some part <strong>of</strong> <strong>the</strong> members’<br />

found <strong>in</strong> s 210 <strong>of</strong> <strong>the</strong> English Companies Act 1948 (which is<br />

<strong>the</strong> equivalent <strong>of</strong> s 181 <strong>of</strong> our Act), Lord President (Cooper)<br />

said (at p 113):<br />

… <strong>the</strong> essence <strong>of</strong> <strong>the</strong> matter seems to be that <strong>the</strong><br />

conduct compla<strong>in</strong>ed <strong>of</strong> should at <strong>the</strong> lowest <strong>in</strong>volve a<br />

visible departure from <strong>the</strong> standards <strong>of</strong> fair deal<strong>in</strong>g, and a<br />

violation <strong>of</strong> <strong>the</strong> conditions <strong>of</strong> fair play on which every<br />

shareholder who entrusts his money to a company is<br />

41

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