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                                         LEGAL CAULDRON
                                                                              Jayadeep Hari & Jamil
                                                                                                            Advocates and Solicitors


                                                                                                                                                        In this issue:

                                                                                                                                                        Group Insurance Policy -
                                                                                                                                                        Sue the insurer? Think again.

                                                                                                                                                        Rear End Collision -
                                                                                                                                                        Is it always entirely your fault?

                                                                                                                                                        Company Directors -
                                                                                                                                                        Can members sue them?

                                                                                                                                                        360 Student Attachment
                                                                                                                                                        Programme - Student reviews

                                                                                                                                                        JHJ & Great Eastern
                                                                                                                                                        collaboration on the CRC.

                                                                                                                                                        JHJ Family Day -
                                                                                                                                                        Flying Fox & Jungle Gym

                                                                                                                                                        JHJ Charity Mission -
                                                                                                                                                        Madagascar 3 Movie Day with
                                                                                                                                                        Orphans




                                    Issue no. 2
                                                                                                                                                        EDITORS:
LEGAL CAULDRON Issue No 2 of 2012




                                                                                                                                                        Andrew Chee
                                                                                                                                                        Adeline Chin




                                               2012
                                                                                                                                                        CONTRIBUTORS:
                                                                                                                                                        Eunice H.S. Ong

                                    of                                                                                                                  Barvina Punnusamy
                                                                                                                                                        Shobana Padmanathan

                                                                                                                                                        Our offices:

                                    PETALING JAYA              KOTA BHARU 1                   KOTA BHARU 2                       MELAKA                 KUALA LUMPUR
                                    Unit 612, 6th Floor,       2713, 1st Floor, Section 22,   Tingkat 2, Lot 11,                 No.54-1, Jalan TU 2,   Suite 2.03 (2nd Floor)
                                    Menara Mutiara Majestic,   Batu 2, Jalan Kuala Krai,      Bangunan Tabung Haji,              Taman Tasik Utama,     Block A, No 45, Medan Setia Satu,
                                    No. 15, Jalan Othman,      15050 Kota Bharu,              Kompleks Niaga, Jalan Dato Pati,   75450 Ayer Keroh,      Plaza Damansara, Bukit Damansara,
                                    46000 PJ, Selangor.        Kelantan.                      15000 Kota Bharu, Kelantan.        Melaka.                50490 Kuala Lumpur.

                                    T: 03-7784 7255            T: 09-741 2050                 T: 09-747 7782                     T: 06-234 7330         T: 03-2096 1478 | F: 03-2096 1480
                                    F: 03-7781 7255            F: 09-741 2051                 F: 09-747 4733                     F: 06-234 4800         www.jhj.com.my
MESSAGE FROM THE EDITOR:
Welcome to the second edition of the Legal Cauldron for          Emmanuel Children‟s Home, Rumah Kebajikan Darul
the year 2012. It seemed not too long ago that the year          Kifayah, and Persatuan Kebajikan Teratak Shifa to watch
began but half a year has nevertheless gone by. We hope          Madagascar 3: Europe‟s Most Wanted at Cathay Cineplex
the year has been as exciting, hectic and fun for you has it     e@Curve (formerly Cineleisure Damansara). Perhaps with
has been for JHJ. And now, we bring you once more our            the impending marriages of some of our JHJ Family
legal writings from our team of lawyers and as always, we        members, children are a subject currently close to home.
do our best to keep our clients abreast with the latest and      We all had a riot watching the movie. We have to say that
pertinent legal and social issues. We hope you enjoy reading     the children were very well-behaved and we are glad to
our newsletter as much as we enjoyed writing them.               have spent time and brought some excitement to their
                                                                 Saturday. Please see photos of the event on page 8.
In our last edition, we mentioned that our headquarters in
Bukit Damansara had expanded and with the expansion, we          It seems we have had a very family-oriented first half and
also now have new colleagues (and friends) to add to the         coincidentally, JHJ also had its Family Day in 7th March albeit
JHJ family. We would like to introduce to you:                   a physically-challenging one. The JHJ Family and their own
                                                                 real family members and friends went to Skytrex Adventure
    Siti Khadijah   (Lawyer – CR Department)                     in Bukit Cahaya Seri Alam to undertake the “Big Thrill”
    Suthes          (Lawyer – CR Department)                     circuit involving tightropes, climbing rope ladders and flying
    Manisah         (Lawyer – Conveyancing Department)           fox challenges. It was no mean feat but we all had our safety
    Adeline         (Manager – Knowledge Department)             harness and clips on at all times and had a good and
    Saravanan       (Secretary – CR Department)                  energetic outing. Please see photos of the event on page 4
    Didie           (Secretary – Conveyancing Department)
    Aisyah          (Receptionist)                               And finally, our Attachment Students have successfully
                                                                 finished our JHJ 360o Student Programme and are facing the
We are very glad to have such capable yet affable                CLP exams soon. We bid them all the best and we‟re sure
personalities onboard and look forward, not just to work         they will do well. In fact, we have been very pleased with
together but to have fun together especially in our              their performance that we have offered them all positions
upcoming office trip!                                            for pupillage upon successful completion of their exams. We
                                                                 now look forward to a second batch of Attachment
On that note, please visit our website (www.jhj.com.my)          Students which we expect to be even more successful given
and see our updated Nature of Practice and Industry              that we have also learnt from our own experiences in this
Experience, which has expanded since our last edition to         Programme and have tweaked it further to help make the
include various other new areas that we have now ventured        Students‟ learning smoother and more effective. Anyone
into. We have, among other areas, extended our scope of          interested in our Programme may email kd@jhj.com.my to
services, such as into the mining industry. We would like to     apply.
thank our clients who have had the faith and confidence to
bring to us new matters in new areas that allowed us to          Now without further ado, please enjoy the latest edition of
expand our knowledge. We are glad to say that we                 the Cauldron with our compliments.
managed, guided always by our We Care philosophy and
core values, to bring all matters in new areas to very
satisfactory conclusions.
                                                                                                  EDITOR
Outside the office however, JHJ was invited by Great                                        Andrew Chee
Eastern Life Assurance to collaborate on a CRC Event                                         Knowledge Dept
(Convention of the Rights of the Child) on 31st March this                            andrewchee@jhj.com.my
year. We jumped at the opportunity and Barvina, who has
always been a passionate Human and Child Rights advocate,
spoke on behalf of JHJ to a large crowd of secondary school
students of their rights in this country. In addition to that,
Mr Jayananda Rao, long time friend of Jayadeep and Hari and
a criminal lawyer of 19 years, spoke also at the event and
informed the children of their rights in relation to the
Criminal Justice System. It was amazing that the children
were highly entertained, yet thoroughly informed, by his
explanation and personal accounts of juvenile cases he has
handled. Please see photos of the event on page 6.

And further to do with children, JHJ had a second event
relating to children. During our Annual Charity Event on
16th June, we brought orphaned children from Praise


                                                Legal Cauldron 2 of 2012 | 2
GROUP INSURANCE POLICY
                          - Sue the Insurer? Think Again.
                                                                            By Eunice H.S. Ong

         When you are employed with a company, more         privity of contract, which is simply defined as you will
often than not, you will enjoy the benefit of insurance     have no right to the contract, if you are not part of it.
hospitalisation coverage. This is where your                This is unless the group accident policy names
employment contract or employment handbook will say         specifically the beneficiaries, and that the beneficiaries
something like this:-                                       may on their own accord file a claim with the insurance
                                                            company.
“Hospitalisation benefits are available to you as an
employee through our group medical insurance.”                      However, if the group accident policy merely
                                                            has the owner of the policy being your employer, then
        Alternatively, you could have taken a group         the law of privity will apply.
accident policy when you apply for membership of say a
Holiday Members Club or a Turf Club for that matter.                If I may cite an example in a reported case, in
                                                            Anuar bin Ismail v Tan Sri Tan Chin Tuan & Anor
       Then, something unfortunate happens, you             [1992] 1 MLJ 155, a professional jockey was required
were admitted into a hospital and require a surgical        to contribute 2% of his riding fees and prize money to
procedure to be done or you suffer a prolapsed disc         the Malayan Racing Association Fund and part of this
(touch wood), you make a claim against the insurance        money was used to pay for the group insurance policy.
company and your claim gets… rejected.                      He suffered injuries and was unable to return to
                                                            professional competitive horse riding on 4 December
         The usual drill takes place, you get angry and     1987 and made a claim against the insurer.
you make a lot of noise, but to no avail. The claim
officers still refuse to process your claim. Then you get            Now, as we have expected, the court dismissed
free coffee-shop legal advice which prompts you to sue      his claim against the insurer on the ground that he was
the insurance company in Court.                             not a party to the contract. The court had stated that
                                                            the absolute owner of the policy was the association
        You may have been told that you will win the        and only the association could claim under it and no one
case, get your claim processed and get the money            else.
insured. You may think that you have insurance
coverage, pursuant to your employment contract or                   But before you hit panic button and conclude
your membership card, there is absolutely no reason         that you have no right to claim from the insurance
that you should fail in your claim. Think again.            company of the sum you were insured on, you should
                                                            know that all is not lost. What this means is that your
                                                            employer being the owner of the policy and also
   “...generally you are not the owner                      pursuant to your contract of employment, it is the duty
                                                            of your employer to make that claim with the insurers
          of the of the policy...”                          and collect the sum insured on trust for you.

        Now, let us put things in perspective. Say we                In the case of Bank Bumiputra Malaysia Bhd
use the first example of your benefit as an employee of     v Mohamed Salleh [2000] 2 CLJ 13 the court held
enjoying hospitalisation benefits; you make a claim         as follows:-
against the insurance company for hospitalisation
expenses, which you had incurred for treating your             “…under the ordinary principles that govern the law
prolapsed disc condition.                                      of trusts, any employee would be able to lodge a
                                                               claim, as a beneficiary of the policy against MNI. This
        What we should first realise is that although          would cause great difficulties to the insurer because it
the policy taken by your employer is for your benefit,         will then be faced with a multitude of claims… the
generally you are not the owner of the policy as you are       person such as the respondent [the employee] cannot
not named in the policy. You do not pay any form of            claim anything under the policy from MNI directly.
contributions to the insurance company, your employer          However, the appellant [employer] is entitled to
does. And generally, until and unless a statute is passed      receive any benefit due to the respondent. Once
to protect the third parties to a contract in Malaysia,        received it will hold monies as trustee for the
you will not be able to succeed in the suit against the        respondent. This then is what a group insurance policy
insurance company. This is what we lawyers like to call,       is about.” [emphasis my own]

                                            Legal Cauldron 2 of 2012 | 3
To translate that quote in simple terms, it

                                                                             EVENTS
means that the right/duty to claim from the insurer lies
with your employer, who will collect/receive the money
on trust for you and make the necessary payment to
you.                                                           JHJ team conquers Skytrex on Family

  “Your cause of action will be against                     The JHJ team went beyond office boundaries and ventured
                                                            into the terrains of Skytrex for some good old exercise,
            your employer.”                                 fresh air and lush greenery in Bukit Cahaya, Shah Alam to
                                                            celebrate our annual Family Day. High spirits and the many
                                                            outdoor facilities available ensured some healthy
         So no, you cannot claim against the insurer for    competition and teamwork amongst us. Flying Fox had our
a group accident/hospitalisation policy if you are not      hearts pumping, Hanging Bridge had our heads spinning;
specifically named in the policy and if it is not stated    but the picnic after made up for all the energy
that you have a right to make that claim, but you can       consumption. It was a revitalising Family Day indeed! We
most certainly claim against your employer or whoever       all went home drenched in sweat with a bucket load of
the owner of the policy will be. And if your employer       cheer.
does not take any action for the insured sum to be paid
to you, your cause of action will be against your
employer, pursuant to the employment contract that
you have signed with your employer. This means that
although you do not have a cause of action against the
insurance company, you do certainly have a cause of
action against your employer pursuant to the
employment contract.

         So, what you do when you need to claim for
hospitalisation expenses is to notify your employer, and
leave the administration in their good hands.


                By Eunice H.S. Ong
                   eunice@jhj.com.my




Interesting Cases:

Sanmarkan a/l Ganapathy & Anor (as
administrators          of    the      estate      of
Saradhamani a/p Doraisamy Gopal, the
deceased) v Dato' Dr V Thuraisingham &
Ors [2012] 3 MLJ 817:
Doctors would be liable for negligence if there was
sufficient equipment, knowledge, skill and experience
to diagnose the ailment but yet failed to further
investigate matters.


Bank Muamalat Malaysia Bhd v Mahkamah
Perusahaan Malaysia & Anor [2011] 6 AMR
832:
An employee’s dismissal from his job for khalwat is
justified because it is a recognised gross misconduct
and the employer’s reputation is to be given priority.


                                            Legal Cauldron 2 of 2012 | 4
REAR END COLLISION
                                   - Is it always entirely your fault?
                                                                             By Barvina Punnusamy

           Imagine driving on the road while listening to your    for the collision as the other driver has a duty to
favourite music, you are just following behind a vehicle          anticipate possible presence of others on the road and
when suddenly the vehicle in front stops and you collide          have a good lookout as held in Chai Phin Chong &
with the vehicle. You are in shock, confused even. The            Anor v Zainal Abidin Mohd Salleh & Anor [1998]
driver comes out, screams at you that it is your fault. But,      4 CLJ 833. In this case, the Court decided that since
how could that be? Why should you be blamed for the               the other driver had suddenly stopped his vehicle
collision when it was the driver who suddenly stopped             without giving any indication, he should be blamed for
without any signal or indication? However the driver insists      the collision as well. Although you should have
that you should be blamed since you had collided into the         maintained a safe distance with the vehicle in front of
rear end of the vehicle. People start surrounding your            you, this does not mean that the other driver had not
vehicle and they also say that it is your fault as the driver     contributed to the collision through his negligence.
travelling behind. In order to avoid any arguments and
dispute with the other driver, you agree to pay for damages                In fact there are cases where the courts have
just to be able to drive away from the scene of the collision.    found that the driver travelling in front to be entirely at
But, is it really entirely your fault?                            fault for a rear end collision. For example, the Court in
                                                                  Kamaruddin Mohd Nor & Anor v Soon Soo Moe
                                                                  & Anor [1998] 4 CLJ Supp 301 held that the driver
   “Why should you be blamed for the                              of a lorry swinging from left to right in order to execute
   collision when it was the driver who                           a U-turn and colliding with a motorcyclist coming from
                                                                  the rear was held totally to blame.
  sudenly stopped without any signal or
                indication?”                                        “You may not be entirely at fault for
         There seems to be an unwritten rule that if you
                                                                              the collision.”
collide with a vehicle in front of you, it is always your fault
regardless of the circumstances leading to the collision.                  This denotes that if the circumstances leading
Surely, this is wrong because there could be other                to the collision shows negligence on the part of the
occasions that result in a rear end collision like when a         driver travelling in the front vehicle, then as the driver
driver suddenly changes lane and encroaches into your lane.       travelling behind, you will not be held entirely at fault.
The notion involving rear end collision comes from rule 22
of the Highway Code which stipulates that the following                    Therefore, you should not have paid the
driver should allow at least one car‟s length between his car     damages in full to the other driver because you were
and the vehicle in front for every ten miles an hour of its       not entirely at fault since there may be contributory
speed.                                                            negligence from the other driver. As a driver following
                                                                  behind a vehicle, it is undeniable that you have a duty to
        Although you may have collided with a vehicle             maintain a safe distance with the vehicle travelling in
on the rear but it does not necessarily mean that you             front of you. But, in the event of a rear end collision, it
are to be entirely blamed for the collision based on the          does not mean that you are entirely at fault regardless
case of Leng Yang Sua & Anor v Ng Yen Ken &                       of the circumstances leading to the collision as
Anor [1986] CLJ (Rep) 448 which held that rear                    demonstrated in the above cases.
vehicle collisions should be decided on their own facts
since there has been no judicial consistency. The Court                    So, the next time you are involved in a rear end
in Abdullah Karim v Ahmad Abdullah & Anor                         collision, identify whether there was negligence on the
[1991] 2 CLJ (Rep) 238 decided that the driver in                 part of the driver travelling in the vehicle in front and
front who had failed to keep a proper lookout before              despite what others might say, it is not always entirely
he stopped the bus to pick up the would-be passenger              your fault if you collide with a vehicle on the rear end.
was found 25% liable for the collision. The driver
following behind was held 75% liable as he had failed to
carry out his duty to keep a safe distance while
following behind the bus.
                                                                                By Barvina Punnusamy
                                                                                     barvina@jhj.com.my
         This means that you may not be entirely at fault

                                                 Legal Cauldron 2 of 2012 | 5
EVENTS
           A Child‟s Prerogative: Insight to Your Legal Rights‟ Forum
On 17 February 1995, Malaysia granted accession to the United Nations Treaty on Human Rights - Convention
on the Rights of the Child. Echoing the accession and the need for a more well informed society on children‟s
rights, Great Eastern Life Assurance (Malaysia) Berhad have in collaboration with JHJ, UNICEF Malaysia, Jabatan
Kebajikan Masyarakat Malaysia and Persatuan Siswazah Wanita Malaysia undertook the decision to organize this
forum on the 31st of March 2012. Present were experienced guest speakers from participating organizations,
students from various schools and other attendees who are keen in learning more about children‟s rights. Here,
we embarked on an insightful journey in the quest to secure a better brighter future for our younger generation.




Beginning of „A Child‟s Prerogative - Insight to           Ms. Barvina speaking on behalf of JHJ to a crowd
 your Legal Rights‟ Forum‟ by Great Eastern                 of secondary school students on their rights




Voice Out - Mr. Jayananda Rao interviewing a                  Active participation of attendees during an
      student during the Q&A session                            interactive session with the speakers




    Students listening attentively as Mr. Rao                The Forum helps provoke thoughts amongst
elaborates his viewpoints on the subject matter               attendees by means of intellectual games

                                         Legal Cauldron 2 of 2012 | 6
COMPANY DIRECTORS
                                - Can members sue them?
                                                                      By Shobana Padmanathan


          Many of us are members of a company. As                       The courts have customarily been reluctant to
members, we entrust the responsibility of the company‟s        interfere with corporate decisions unless there is a clear
affairs being conducted to our best interest in the hands of   case justifying such an interference. This is so to avoid
the company‟s directors. For efficient and clear               vexatious or baseless claims brought up by minority
administration, a company‟s Articles outlines the governing    shareholders against the directors of a company. This is
rules, duties and functions of the directors in order to       known as the internal management rule founded in the
protect the company and its members from abuse of              English case of Foss vs. Harbottle.
powers and conflict of interests. But what happens when
things get out of control? What can the members do to                   The setback of this rule is that it deprives the
save themselves from being oppressed by these directors        minority from having an avenue for their complaints to be
who are inevitably the the mind and will of the company?       heard. To solve this problem, certain exceptions were
But before all that, who is a member?                          made, which include allowing members to bring a personal
                                                               action against a director if the act complained of constitutes
         There is a difference between a member and a          fraud on the minority.
shareholder. A person is called a member of the company if
his name is included in the company‟s register. He remains a             Moving on, we will look at what the Act has to
member so long as his name is not removed from the             offer for the members of a company. Section 181 of the Act
company‟s register. However, a shareholder is a person         provides a list of reasons and remedies for instances of
who carries the ordinary shares of that particular company.    oppression. The gist of this section is that if there has been
The shareholder will become a member if his name is            an oppression of the company‟s members; i.e. the members‟
included in the company‟s register. Apart from that,           interests being starkly disregarded, unfairly discriminated or
subscribers of the company‟s Memorandum of Association         prejudiced, the law allows them to bring an action in court
will by default be deemed the original members of the          to end or to remedy the act complained of. Thereafter, the
company.                                                       court will prohibit or cancel the act, regulate the future
                                                               affairs of the company, put the minority member‟s shares up
                                                               for sale to other members of the company, or in worst case
   “A person is called the member of a                         scenario, order that the company be wound up.
    company if his name is included in                                   The question to be decided by the court is whether
       the register of a company.”                             the reasonable or legitimate expectations of a member have
                                                               been breached. To cite some precedents, the case of
                                                               Chiew Sze Sun v Cast Iron Products Sdn Bhd
         So again, how do we control the “controllers of       illustrates that when poor financial reporting led to minority
the company” when they have been given administrative          shareholders‟ interests being side-lined amounted to
powers? Fortunately, the law have safeguarded our interest     oppression. In Ng Chee Keong v Ng Teong Kiat
in various ways so as to provide us the rights to bring an     Highlands Plantation Ltd, the company‟s assets consisted
action against oppressive directors. The next question is,     of tea plantations. As the company have neglected the
what is “oppressive”? Any conduct of disregard, injustice,     plantation, the state government indicated that the property
discrimination and prejudice done towards the company or       will be forfeited. The court held that there was oppression
its members is considered to be oppressive. This includes,     because the directors had conducted the affairs of the
among others, denial of access to information, excessive       company in disregard of its members‟ interest. Another
payment of director‟s remuneration, misuse of company‟s        important section is sections 218 (1)(f) and 218 (1)(i).
funds or assets, failure to execute an action, unfair share    These sections provide for the situation where a company
allotment, performance of conducts damaging to the             may be wound up. It is the intention of Parliament that if the
company and any other breach of director‟s duties.             directors have acted in their own interests and not the
                                                               interest of its members in an unjust and prejudicial manner,
         The governing law for this area is no other than      the Court will wind up the company if they find it “just and
the Companies Act of Malaysia 1965 („the Act‟) enacted         equitable” to do so. “Just and equitable” simply means
by Parliament. The Act provides effective procedures           fairness in justice by means of reason and conscience.
enabling a company‟s members to obtain remedies in case        Examples of situations that have been accepted as valid for
of oppression. Members may also seek to bring an action        winding up on “just and equitable” grounds include instances
against a director for breach of fiduciary duties under the    when the purpose of the company could not be achieved,
common law.                                                    when the management is deadlocked or is guilty of serious

                                               Legal Cauldron 2 of 2012 | 7
irregularities, and if there is a breakdown of mutual trust

                                                                                  EVENTS
within the management of the company.

    “The question to be decided by the                         Madagascar III - Movie Day with Orphans
     court is whether the reasonable or                         Popcorns, Fruit Juices & Lunch Boxes after. Lets Move It!
   legitimate expectations of a member
            have been breached.”
          The members may also seek to remove a director
who is oppressive under section 128 of the Act and Article
69 of the Articles of Association. Requirements under the
law for a resolution of removal to be passed is firstly, for
members to give notice of such resolution not less than
twenty-eight (28) days prior to the proposed meeting, and
secondly to pass an ordinary resolution by ways of a simple
majority.

         A remedy also available under the common law is
the members‟ derivative action. Simply put, it allows a
member to bring an action against the director on behalf of
the company. If the derivative action is successful and the
director is ordered by the company to pay compensation,                                                   Thirst
the compensation is paid to the company and not to the                                                    Quenchers!
individual member. This is because it is the company which                                                Saravanan
has a right to bring the legal action and not the individual                                              handing out
member.                                                                                                   bottles of fruit
                                                                                                          juice to the
         In conclusion, although the directors of a company                                               children
are conferred certain powers to ensure the smooth-running                                                 before the
and effective functioning of a company, the law have                                                      movie starts
developed various remedies to protect the interests of the
company and its members should the directors act unfairly
and/or oppressively.
                                                                Long Queue
                                                                    Boys from
                                                                 Rumah Anak
                                                                  Yatim Darul
        By Shobana Padmanathan                                   Kifayah lining
               shobana@jhj.com.my                                  up for their
                                                                  lunch boxes
                                                                 after an hour
                                                                     of giggles




                                               Legal Cauldron 2 of 2012 | 8
FEATURE ARTICLE
                       JHJ 360°                           Months have passed and the three young lads who
                                                          joined the JHJ family late last year have completed
                       STUDENT                            their student attachment programme. We have
        360o                                              witnessed their dedication and dilligence throughout
                       ATTACHMENT                         the duration of the programme and are proud of
                       PROGRAMME                          their accomplishments. Here are their afterthoughts
                                                          on JHJ‟s 360° Student Attachment Programme.

                      Vijayandran
                      LLB University of London External Programme 2011

                       It has been six months since I first started the JHJ 360° attachment program in Jayadeep Hari and
                       Jamil. Never once in my entire experience have I regretted the decision of joining the program.
                       Being involved in four different departments, I have had the chance to experience a wide scope of
                       legal matters from court documents, agreements, research and court work. This is due to the wide
                       scope of tasks ranging from legal work to other types of tasks. The program through the tasks
designed gives a slight glimpse into the workings of a law firm from the managerial standpoint to the synchronisation of
work between the lawyers and also the chambering students apart from legal works.


          Being given the opportunity to follow the lawyers to court and meeting clients was a real eye opener. For me,
court litigation had been heavily influenced by movies and television. Sitting in a court room for the first time was a
magnificent experience and it gave me a firsthand knowledge to properly understand what I would be embarking upon in
the future. Court ethics and advocacy played such a huge part in the litigation process. It was also crucial to realise the
role that the clients played in the litigation process and the responsibilities we have accepted in handling their case. The
choices we make and the litigation process we go through would greatly affect our clients long after we have forgotten
about it.


         One of the task which made me realise to never ignore the small things and take it for granted was the despatch
task. Having to run around everywhere was not something small. Waiting in line for hours merely to submit a document in
court or to get approval by one of the government bodies is not a luxury a chambering student or a lawyer has. Without
the despatch, the law firm would not be able to run smoothly and maybe even come to a standstill with everyone running
from one place to another.


         The best thing about the firm was the people inside. The chambering students, the clerks and the lawyers have all
been a great help and have never turned me down. Some even took time out of their busy schedule to explain some of the
basics for the task that I were to handle. Even if some tasks were fictional, they took the greatest effort to explain what
needed to be done and what are the desired results. Overall, the six months I spent in JHJ was a pleasant and enjoyable
one due to the people and the working culture. JHJ really lives up to their motto “We Care”.


                     Fong Kai Mun
                     LLB University of London External Programme 2011

                      I have always wanted to know how a law firm actually functions and how lawyers actually do their
                      job. Through this JHJ 360° programme, I managed to have a glimpse at how it all works. Through the
                      programme, I understood that being a lawyer isn‟t easy at all. They are here to get the job done. You
                      are expected to meet clients‟ needs and protect their interests while considering the case from the
                      opposing party‟s angle and all the other possible problems that might arise under foreseeable
circumstances. Therefore it is sometimes very difficult to strike a balance between solving the problem and benefiting your
clients because you cannot be disregarding the other party‟s interests as well.
                                                                                          [to be continued on the next page…]

                                               Legal Cauldron 2 of 2012 | 9
As a lawyer you have to deal with all sorts of people; people from different cultures and backgrounds. You are
bound to meet difficulties in dealing with these people. It becomes even more difficult when there are miscommunications
and human errors. Therefore in order to be a lawyer, you would not only need to be smart but you also have to be
resourceful and be able to communicate well with the people that you work with, to be persuasive.

        Time appears to be never enough for a busy lawyer. It is known that lawyers have to work long hours and I have
seen lawyers working extra hours just to get the job done. It seems that in order to be a successful lawyer you would also
need to manage your time well.

           It is getting increasingly difficult to survive in this competitive industry, the „cut-throat industry‟ as some would call
it. In order to thrive, lawyers have to live up to the standards of a true professional by providing better services to the
clients. If you are really good at what you do, you would not need to hunt for jobs anymore. Opportunities come to you. I
was told that the only thing a lawyer can truly rely on is his/her knowledge and understanding of the law. Afterall, this is
the tool of the trade.

         Through this programme, I have also come to an understanding that ethics are very important to a lawyer. There
are legal practitioners committing criminal breach of trusts and absconding with the clients‟ money. But where is the
honour of being a professional if we do not follow the code of conduct? Hopefully I would be able to carry myself well
enough in the future so as not to bring shame to the profession.

         What do I have to say about this programme? The JHJ 360° programme is really practical and truly beneficial to a
law student such as myself. I would not have been able to learn as much as I did here if I were to be anywhere else. I am
proud to be an attachment student under the JHJ 360° Programme. I hope that JHJ will continue providing this great
opportunity to other students in the future in order for them to experience what we have experienced. Last but not least,
I just want to say: “Thank You JHJ”.


                       Ng Chin Han
                       LLB University of London External Programme 2011

                       For the past four months, it has been a great pleasure for me to participate in JHJ‟s 360° Student
                       Attachment Programme. My JHJ experience kickstarted when I received the Book Prize Award
                       sponsored by JHJ for LLB Part 2 Finals, which enabled me to partake in this 360° Student Attachment
                       Programme.

         Prior to joining the firm, I have been informed by JHJ‟s Head of Knowledge Department and the two other
Student Attachment Programme participants about the invaluable experiences one can get from this programme. Hence, I
joined the program with great anticipation, hoping to gain appraisable skills and experience through the course of this
programme. Expectantly, this programme have lived up to, if not went beyond my intents.

           The biggest impact this Attachment Program have on me perhaps is that it gave me the opportunity to get to
know the legal field better. By joining the Programme, I was exposed not just to all the legal work which I couldn‟t have
experienced during the course of my Law Degree or CLP study, but also to the JHJ team which is vastly experienced in the
legal field. By performing legal works and mingling with the JHJ team, I have gotten to know the legal field from a different
perspective. Hence for me, the Attachment Program is the first step I have taken in the effort to get to know the real legal
world and I do think it‟s a really good start.

         Through the programme, I was given the opportunity to deal with both fictional and real legal problems. They
have proved to be challenging, but this opportunity undoubtedly made a great experience. The tasks provided in the
Attachment Program centered on four main areas of the legal practice, namely the Corporate, Conflict Resolution,
Conveyancing and Knowledge Department. Thus by experiencing a wide variation of legal works, I grew tremendously and
was challenged by new tasks on a daily basis.

          Learning skills and gaining experience during the course of this program was never a difficult task. This was due to
the overwhelming support by all of the JHJ staff ranging from chambering students to the partners. Advice and tips to good
legal practice had always been taught to us without hesitation by the JHJ team.

        Furthermore, I was not only exposed to legal aspects through this program, but also to the management,
marketing, and many other facets of the legal field. This exposure has further broadened my view and mindset besides
making me realize the importance of possessing knowledge outside the realm of legal practice. I truly believe that the
knowledge in other fields will prove to be useful and of importance in the future.

                                                  Legal Cauldron 2 of 2012 | 10
JHJ Outside Work




    Legal Cauldron 2 of 2012 | 11
Kuala Lumpur        .   Petaling Jaya      .   Kota Bharu       .    Melaka

This is a publication produced by the JHJ Knowledge Department. For any inquiries, please do not hesitate to contact
us: T: 03-2096 1478 | F: 03-2096 1480 | E: kd@jhj.com.my | W: www.jhj.com.my

Publisher: Messrs Jayadeep Hari & Jamil, Suite 2.03 (2nd Floor), Block A, Plaza Damansara, Bukit Damansara, 50490 KL.
Printers: Pressworks Enterprise, No 20, Jalan Usaha Satu 25/2A, 40400 Shah Alam.

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Legal Cauldron issue 2 of 2012

  • 1. No KDN: PP 15706/02/2013 (032198) LEGAL CAULDRON Jayadeep Hari & Jamil Advocates and Solicitors In this issue: Group Insurance Policy - Sue the insurer? Think again. Rear End Collision - Is it always entirely your fault? Company Directors - Can members sue them? 360 Student Attachment Programme - Student reviews JHJ & Great Eastern collaboration on the CRC. JHJ Family Day - Flying Fox & Jungle Gym JHJ Charity Mission - Madagascar 3 Movie Day with Orphans Issue no. 2 EDITORS: LEGAL CAULDRON Issue No 2 of 2012 Andrew Chee Adeline Chin 2012 CONTRIBUTORS: Eunice H.S. Ong of Barvina Punnusamy Shobana Padmanathan Our offices: PETALING JAYA KOTA BHARU 1 KOTA BHARU 2 MELAKA KUALA LUMPUR Unit 612, 6th Floor, 2713, 1st Floor, Section 22, Tingkat 2, Lot 11, No.54-1, Jalan TU 2, Suite 2.03 (2nd Floor) Menara Mutiara Majestic, Batu 2, Jalan Kuala Krai, Bangunan Tabung Haji, Taman Tasik Utama, Block A, No 45, Medan Setia Satu, No. 15, Jalan Othman, 15050 Kota Bharu, Kompleks Niaga, Jalan Dato Pati, 75450 Ayer Keroh, Plaza Damansara, Bukit Damansara, 46000 PJ, Selangor. Kelantan. 15000 Kota Bharu, Kelantan. Melaka. 50490 Kuala Lumpur. T: 03-7784 7255 T: 09-741 2050 T: 09-747 7782 T: 06-234 7330 T: 03-2096 1478 | F: 03-2096 1480 F: 03-7781 7255 F: 09-741 2051 F: 09-747 4733 F: 06-234 4800 www.jhj.com.my
  • 2. MESSAGE FROM THE EDITOR: Welcome to the second edition of the Legal Cauldron for Emmanuel Children‟s Home, Rumah Kebajikan Darul the year 2012. It seemed not too long ago that the year Kifayah, and Persatuan Kebajikan Teratak Shifa to watch began but half a year has nevertheless gone by. We hope Madagascar 3: Europe‟s Most Wanted at Cathay Cineplex the year has been as exciting, hectic and fun for you has it e@Curve (formerly Cineleisure Damansara). Perhaps with has been for JHJ. And now, we bring you once more our the impending marriages of some of our JHJ Family legal writings from our team of lawyers and as always, we members, children are a subject currently close to home. do our best to keep our clients abreast with the latest and We all had a riot watching the movie. We have to say that pertinent legal and social issues. We hope you enjoy reading the children were very well-behaved and we are glad to our newsletter as much as we enjoyed writing them. have spent time and brought some excitement to their Saturday. Please see photos of the event on page 8. In our last edition, we mentioned that our headquarters in Bukit Damansara had expanded and with the expansion, we It seems we have had a very family-oriented first half and also now have new colleagues (and friends) to add to the coincidentally, JHJ also had its Family Day in 7th March albeit JHJ family. We would like to introduce to you: a physically-challenging one. The JHJ Family and their own real family members and friends went to Skytrex Adventure Siti Khadijah (Lawyer – CR Department) in Bukit Cahaya Seri Alam to undertake the “Big Thrill” Suthes (Lawyer – CR Department) circuit involving tightropes, climbing rope ladders and flying Manisah (Lawyer – Conveyancing Department) fox challenges. It was no mean feat but we all had our safety Adeline (Manager – Knowledge Department) harness and clips on at all times and had a good and Saravanan (Secretary – CR Department) energetic outing. Please see photos of the event on page 4 Didie (Secretary – Conveyancing Department) Aisyah (Receptionist) And finally, our Attachment Students have successfully finished our JHJ 360o Student Programme and are facing the We are very glad to have such capable yet affable CLP exams soon. We bid them all the best and we‟re sure personalities onboard and look forward, not just to work they will do well. In fact, we have been very pleased with together but to have fun together especially in our their performance that we have offered them all positions upcoming office trip! for pupillage upon successful completion of their exams. We now look forward to a second batch of Attachment On that note, please visit our website (www.jhj.com.my) Students which we expect to be even more successful given and see our updated Nature of Practice and Industry that we have also learnt from our own experiences in this Experience, which has expanded since our last edition to Programme and have tweaked it further to help make the include various other new areas that we have now ventured Students‟ learning smoother and more effective. Anyone into. We have, among other areas, extended our scope of interested in our Programme may email kd@jhj.com.my to services, such as into the mining industry. We would like to apply. thank our clients who have had the faith and confidence to bring to us new matters in new areas that allowed us to Now without further ado, please enjoy the latest edition of expand our knowledge. We are glad to say that we the Cauldron with our compliments. managed, guided always by our We Care philosophy and core values, to bring all matters in new areas to very satisfactory conclusions. EDITOR Outside the office however, JHJ was invited by Great Andrew Chee Eastern Life Assurance to collaborate on a CRC Event Knowledge Dept (Convention of the Rights of the Child) on 31st March this andrewchee@jhj.com.my year. We jumped at the opportunity and Barvina, who has always been a passionate Human and Child Rights advocate, spoke on behalf of JHJ to a large crowd of secondary school students of their rights in this country. In addition to that, Mr Jayananda Rao, long time friend of Jayadeep and Hari and a criminal lawyer of 19 years, spoke also at the event and informed the children of their rights in relation to the Criminal Justice System. It was amazing that the children were highly entertained, yet thoroughly informed, by his explanation and personal accounts of juvenile cases he has handled. Please see photos of the event on page 6. And further to do with children, JHJ had a second event relating to children. During our Annual Charity Event on 16th June, we brought orphaned children from Praise Legal Cauldron 2 of 2012 | 2
  • 3. GROUP INSURANCE POLICY - Sue the Insurer? Think Again. By Eunice H.S. Ong When you are employed with a company, more privity of contract, which is simply defined as you will often than not, you will enjoy the benefit of insurance have no right to the contract, if you are not part of it. hospitalisation coverage. This is where your This is unless the group accident policy names employment contract or employment handbook will say specifically the beneficiaries, and that the beneficiaries something like this:- may on their own accord file a claim with the insurance company. “Hospitalisation benefits are available to you as an employee through our group medical insurance.” However, if the group accident policy merely has the owner of the policy being your employer, then Alternatively, you could have taken a group the law of privity will apply. accident policy when you apply for membership of say a Holiday Members Club or a Turf Club for that matter. If I may cite an example in a reported case, in Anuar bin Ismail v Tan Sri Tan Chin Tuan & Anor Then, something unfortunate happens, you [1992] 1 MLJ 155, a professional jockey was required were admitted into a hospital and require a surgical to contribute 2% of his riding fees and prize money to procedure to be done or you suffer a prolapsed disc the Malayan Racing Association Fund and part of this (touch wood), you make a claim against the insurance money was used to pay for the group insurance policy. company and your claim gets… rejected. He suffered injuries and was unable to return to professional competitive horse riding on 4 December The usual drill takes place, you get angry and 1987 and made a claim against the insurer. you make a lot of noise, but to no avail. The claim officers still refuse to process your claim. Then you get Now, as we have expected, the court dismissed free coffee-shop legal advice which prompts you to sue his claim against the insurer on the ground that he was the insurance company in Court. not a party to the contract. The court had stated that the absolute owner of the policy was the association You may have been told that you will win the and only the association could claim under it and no one case, get your claim processed and get the money else. insured. You may think that you have insurance coverage, pursuant to your employment contract or But before you hit panic button and conclude your membership card, there is absolutely no reason that you have no right to claim from the insurance that you should fail in your claim. Think again. company of the sum you were insured on, you should know that all is not lost. What this means is that your employer being the owner of the policy and also “...generally you are not the owner pursuant to your contract of employment, it is the duty of your employer to make that claim with the insurers of the of the policy...” and collect the sum insured on trust for you. Now, let us put things in perspective. Say we In the case of Bank Bumiputra Malaysia Bhd use the first example of your benefit as an employee of v Mohamed Salleh [2000] 2 CLJ 13 the court held enjoying hospitalisation benefits; you make a claim as follows:- against the insurance company for hospitalisation expenses, which you had incurred for treating your “…under the ordinary principles that govern the law prolapsed disc condition. of trusts, any employee would be able to lodge a claim, as a beneficiary of the policy against MNI. This What we should first realise is that although would cause great difficulties to the insurer because it the policy taken by your employer is for your benefit, will then be faced with a multitude of claims… the generally you are not the owner of the policy as you are person such as the respondent [the employee] cannot not named in the policy. You do not pay any form of claim anything under the policy from MNI directly. contributions to the insurance company, your employer However, the appellant [employer] is entitled to does. And generally, until and unless a statute is passed receive any benefit due to the respondent. Once to protect the third parties to a contract in Malaysia, received it will hold monies as trustee for the you will not be able to succeed in the suit against the respondent. This then is what a group insurance policy insurance company. This is what we lawyers like to call, is about.” [emphasis my own] Legal Cauldron 2 of 2012 | 3
  • 4. To translate that quote in simple terms, it EVENTS means that the right/duty to claim from the insurer lies with your employer, who will collect/receive the money on trust for you and make the necessary payment to you. JHJ team conquers Skytrex on Family “Your cause of action will be against The JHJ team went beyond office boundaries and ventured into the terrains of Skytrex for some good old exercise, your employer.” fresh air and lush greenery in Bukit Cahaya, Shah Alam to celebrate our annual Family Day. High spirits and the many outdoor facilities available ensured some healthy So no, you cannot claim against the insurer for competition and teamwork amongst us. Flying Fox had our a group accident/hospitalisation policy if you are not hearts pumping, Hanging Bridge had our heads spinning; specifically named in the policy and if it is not stated but the picnic after made up for all the energy that you have a right to make that claim, but you can consumption. It was a revitalising Family Day indeed! We most certainly claim against your employer or whoever all went home drenched in sweat with a bucket load of the owner of the policy will be. And if your employer cheer. does not take any action for the insured sum to be paid to you, your cause of action will be against your employer, pursuant to the employment contract that you have signed with your employer. This means that although you do not have a cause of action against the insurance company, you do certainly have a cause of action against your employer pursuant to the employment contract. So, what you do when you need to claim for hospitalisation expenses is to notify your employer, and leave the administration in their good hands. By Eunice H.S. Ong eunice@jhj.com.my Interesting Cases: Sanmarkan a/l Ganapathy & Anor (as administrators of the estate of Saradhamani a/p Doraisamy Gopal, the deceased) v Dato' Dr V Thuraisingham & Ors [2012] 3 MLJ 817: Doctors would be liable for negligence if there was sufficient equipment, knowledge, skill and experience to diagnose the ailment but yet failed to further investigate matters. Bank Muamalat Malaysia Bhd v Mahkamah Perusahaan Malaysia & Anor [2011] 6 AMR 832: An employee’s dismissal from his job for khalwat is justified because it is a recognised gross misconduct and the employer’s reputation is to be given priority. Legal Cauldron 2 of 2012 | 4
  • 5. REAR END COLLISION - Is it always entirely your fault? By Barvina Punnusamy Imagine driving on the road while listening to your for the collision as the other driver has a duty to favourite music, you are just following behind a vehicle anticipate possible presence of others on the road and when suddenly the vehicle in front stops and you collide have a good lookout as held in Chai Phin Chong & with the vehicle. You are in shock, confused even. The Anor v Zainal Abidin Mohd Salleh & Anor [1998] driver comes out, screams at you that it is your fault. But, 4 CLJ 833. In this case, the Court decided that since how could that be? Why should you be blamed for the the other driver had suddenly stopped his vehicle collision when it was the driver who suddenly stopped without giving any indication, he should be blamed for without any signal or indication? However the driver insists the collision as well. Although you should have that you should be blamed since you had collided into the maintained a safe distance with the vehicle in front of rear end of the vehicle. People start surrounding your you, this does not mean that the other driver had not vehicle and they also say that it is your fault as the driver contributed to the collision through his negligence. travelling behind. In order to avoid any arguments and dispute with the other driver, you agree to pay for damages In fact there are cases where the courts have just to be able to drive away from the scene of the collision. found that the driver travelling in front to be entirely at But, is it really entirely your fault? fault for a rear end collision. For example, the Court in Kamaruddin Mohd Nor & Anor v Soon Soo Moe & Anor [1998] 4 CLJ Supp 301 held that the driver “Why should you be blamed for the of a lorry swinging from left to right in order to execute collision when it was the driver who a U-turn and colliding with a motorcyclist coming from the rear was held totally to blame. sudenly stopped without any signal or indication?” “You may not be entirely at fault for There seems to be an unwritten rule that if you the collision.” collide with a vehicle in front of you, it is always your fault regardless of the circumstances leading to the collision. This denotes that if the circumstances leading Surely, this is wrong because there could be other to the collision shows negligence on the part of the occasions that result in a rear end collision like when a driver travelling in the front vehicle, then as the driver driver suddenly changes lane and encroaches into your lane. travelling behind, you will not be held entirely at fault. The notion involving rear end collision comes from rule 22 of the Highway Code which stipulates that the following Therefore, you should not have paid the driver should allow at least one car‟s length between his car damages in full to the other driver because you were and the vehicle in front for every ten miles an hour of its not entirely at fault since there may be contributory speed. negligence from the other driver. As a driver following behind a vehicle, it is undeniable that you have a duty to Although you may have collided with a vehicle maintain a safe distance with the vehicle travelling in on the rear but it does not necessarily mean that you front of you. But, in the event of a rear end collision, it are to be entirely blamed for the collision based on the does not mean that you are entirely at fault regardless case of Leng Yang Sua & Anor v Ng Yen Ken & of the circumstances leading to the collision as Anor [1986] CLJ (Rep) 448 which held that rear demonstrated in the above cases. vehicle collisions should be decided on their own facts since there has been no judicial consistency. The Court So, the next time you are involved in a rear end in Abdullah Karim v Ahmad Abdullah & Anor collision, identify whether there was negligence on the [1991] 2 CLJ (Rep) 238 decided that the driver in part of the driver travelling in the vehicle in front and front who had failed to keep a proper lookout before despite what others might say, it is not always entirely he stopped the bus to pick up the would-be passenger your fault if you collide with a vehicle on the rear end. was found 25% liable for the collision. The driver following behind was held 75% liable as he had failed to carry out his duty to keep a safe distance while following behind the bus. By Barvina Punnusamy barvina@jhj.com.my This means that you may not be entirely at fault Legal Cauldron 2 of 2012 | 5
  • 6. EVENTS A Child‟s Prerogative: Insight to Your Legal Rights‟ Forum On 17 February 1995, Malaysia granted accession to the United Nations Treaty on Human Rights - Convention on the Rights of the Child. Echoing the accession and the need for a more well informed society on children‟s rights, Great Eastern Life Assurance (Malaysia) Berhad have in collaboration with JHJ, UNICEF Malaysia, Jabatan Kebajikan Masyarakat Malaysia and Persatuan Siswazah Wanita Malaysia undertook the decision to organize this forum on the 31st of March 2012. Present were experienced guest speakers from participating organizations, students from various schools and other attendees who are keen in learning more about children‟s rights. Here, we embarked on an insightful journey in the quest to secure a better brighter future for our younger generation. Beginning of „A Child‟s Prerogative - Insight to Ms. Barvina speaking on behalf of JHJ to a crowd your Legal Rights‟ Forum‟ by Great Eastern of secondary school students on their rights Voice Out - Mr. Jayananda Rao interviewing a Active participation of attendees during an student during the Q&A session interactive session with the speakers Students listening attentively as Mr. Rao The Forum helps provoke thoughts amongst elaborates his viewpoints on the subject matter attendees by means of intellectual games Legal Cauldron 2 of 2012 | 6
  • 7. COMPANY DIRECTORS - Can members sue them? By Shobana Padmanathan Many of us are members of a company. As The courts have customarily been reluctant to members, we entrust the responsibility of the company‟s interfere with corporate decisions unless there is a clear affairs being conducted to our best interest in the hands of case justifying such an interference. This is so to avoid the company‟s directors. For efficient and clear vexatious or baseless claims brought up by minority administration, a company‟s Articles outlines the governing shareholders against the directors of a company. This is rules, duties and functions of the directors in order to known as the internal management rule founded in the protect the company and its members from abuse of English case of Foss vs. Harbottle. powers and conflict of interests. But what happens when things get out of control? What can the members do to The setback of this rule is that it deprives the save themselves from being oppressed by these directors minority from having an avenue for their complaints to be who are inevitably the the mind and will of the company? heard. To solve this problem, certain exceptions were But before all that, who is a member? made, which include allowing members to bring a personal action against a director if the act complained of constitutes There is a difference between a member and a fraud on the minority. shareholder. A person is called a member of the company if his name is included in the company‟s register. He remains a Moving on, we will look at what the Act has to member so long as his name is not removed from the offer for the members of a company. Section 181 of the Act company‟s register. However, a shareholder is a person provides a list of reasons and remedies for instances of who carries the ordinary shares of that particular company. oppression. The gist of this section is that if there has been The shareholder will become a member if his name is an oppression of the company‟s members; i.e. the members‟ included in the company‟s register. Apart from that, interests being starkly disregarded, unfairly discriminated or subscribers of the company‟s Memorandum of Association prejudiced, the law allows them to bring an action in court will by default be deemed the original members of the to end or to remedy the act complained of. Thereafter, the company. court will prohibit or cancel the act, regulate the future affairs of the company, put the minority member‟s shares up for sale to other members of the company, or in worst case “A person is called the member of a scenario, order that the company be wound up. company if his name is included in The question to be decided by the court is whether the register of a company.” the reasonable or legitimate expectations of a member have been breached. To cite some precedents, the case of Chiew Sze Sun v Cast Iron Products Sdn Bhd So again, how do we control the “controllers of illustrates that when poor financial reporting led to minority the company” when they have been given administrative shareholders‟ interests being side-lined amounted to powers? Fortunately, the law have safeguarded our interest oppression. In Ng Chee Keong v Ng Teong Kiat in various ways so as to provide us the rights to bring an Highlands Plantation Ltd, the company‟s assets consisted action against oppressive directors. The next question is, of tea plantations. As the company have neglected the what is “oppressive”? Any conduct of disregard, injustice, plantation, the state government indicated that the property discrimination and prejudice done towards the company or will be forfeited. The court held that there was oppression its members is considered to be oppressive. This includes, because the directors had conducted the affairs of the among others, denial of access to information, excessive company in disregard of its members‟ interest. Another payment of director‟s remuneration, misuse of company‟s important section is sections 218 (1)(f) and 218 (1)(i). funds or assets, failure to execute an action, unfair share These sections provide for the situation where a company allotment, performance of conducts damaging to the may be wound up. It is the intention of Parliament that if the company and any other breach of director‟s duties. directors have acted in their own interests and not the interest of its members in an unjust and prejudicial manner, The governing law for this area is no other than the Court will wind up the company if they find it “just and the Companies Act of Malaysia 1965 („the Act‟) enacted equitable” to do so. “Just and equitable” simply means by Parliament. The Act provides effective procedures fairness in justice by means of reason and conscience. enabling a company‟s members to obtain remedies in case Examples of situations that have been accepted as valid for of oppression. Members may also seek to bring an action winding up on “just and equitable” grounds include instances against a director for breach of fiduciary duties under the when the purpose of the company could not be achieved, common law. when the management is deadlocked or is guilty of serious Legal Cauldron 2 of 2012 | 7
  • 8. irregularities, and if there is a breakdown of mutual trust EVENTS within the management of the company. “The question to be decided by the Madagascar III - Movie Day with Orphans court is whether the reasonable or Popcorns, Fruit Juices & Lunch Boxes after. Lets Move It! legitimate expectations of a member have been breached.” The members may also seek to remove a director who is oppressive under section 128 of the Act and Article 69 of the Articles of Association. Requirements under the law for a resolution of removal to be passed is firstly, for members to give notice of such resolution not less than twenty-eight (28) days prior to the proposed meeting, and secondly to pass an ordinary resolution by ways of a simple majority. A remedy also available under the common law is the members‟ derivative action. Simply put, it allows a member to bring an action against the director on behalf of the company. If the derivative action is successful and the director is ordered by the company to pay compensation, Thirst the compensation is paid to the company and not to the Quenchers! individual member. This is because it is the company which Saravanan has a right to bring the legal action and not the individual handing out member. bottles of fruit juice to the In conclusion, although the directors of a company children are conferred certain powers to ensure the smooth-running before the and effective functioning of a company, the law have movie starts developed various remedies to protect the interests of the company and its members should the directors act unfairly and/or oppressively. Long Queue Boys from Rumah Anak Yatim Darul By Shobana Padmanathan Kifayah lining shobana@jhj.com.my up for their lunch boxes after an hour of giggles Legal Cauldron 2 of 2012 | 8
  • 9. FEATURE ARTICLE JHJ 360° Months have passed and the three young lads who joined the JHJ family late last year have completed STUDENT their student attachment programme. We have 360o witnessed their dedication and dilligence throughout ATTACHMENT the duration of the programme and are proud of PROGRAMME their accomplishments. Here are their afterthoughts on JHJ‟s 360° Student Attachment Programme. Vijayandran LLB University of London External Programme 2011 It has been six months since I first started the JHJ 360° attachment program in Jayadeep Hari and Jamil. Never once in my entire experience have I regretted the decision of joining the program. Being involved in four different departments, I have had the chance to experience a wide scope of legal matters from court documents, agreements, research and court work. This is due to the wide scope of tasks ranging from legal work to other types of tasks. The program through the tasks designed gives a slight glimpse into the workings of a law firm from the managerial standpoint to the synchronisation of work between the lawyers and also the chambering students apart from legal works. Being given the opportunity to follow the lawyers to court and meeting clients was a real eye opener. For me, court litigation had been heavily influenced by movies and television. Sitting in a court room for the first time was a magnificent experience and it gave me a firsthand knowledge to properly understand what I would be embarking upon in the future. Court ethics and advocacy played such a huge part in the litigation process. It was also crucial to realise the role that the clients played in the litigation process and the responsibilities we have accepted in handling their case. The choices we make and the litigation process we go through would greatly affect our clients long after we have forgotten about it. One of the task which made me realise to never ignore the small things and take it for granted was the despatch task. Having to run around everywhere was not something small. Waiting in line for hours merely to submit a document in court or to get approval by one of the government bodies is not a luxury a chambering student or a lawyer has. Without the despatch, the law firm would not be able to run smoothly and maybe even come to a standstill with everyone running from one place to another. The best thing about the firm was the people inside. The chambering students, the clerks and the lawyers have all been a great help and have never turned me down. Some even took time out of their busy schedule to explain some of the basics for the task that I were to handle. Even if some tasks were fictional, they took the greatest effort to explain what needed to be done and what are the desired results. Overall, the six months I spent in JHJ was a pleasant and enjoyable one due to the people and the working culture. JHJ really lives up to their motto “We Care”. Fong Kai Mun LLB University of London External Programme 2011 I have always wanted to know how a law firm actually functions and how lawyers actually do their job. Through this JHJ 360° programme, I managed to have a glimpse at how it all works. Through the programme, I understood that being a lawyer isn‟t easy at all. They are here to get the job done. You are expected to meet clients‟ needs and protect their interests while considering the case from the opposing party‟s angle and all the other possible problems that might arise under foreseeable circumstances. Therefore it is sometimes very difficult to strike a balance between solving the problem and benefiting your clients because you cannot be disregarding the other party‟s interests as well. [to be continued on the next page…] Legal Cauldron 2 of 2012 | 9
  • 10. As a lawyer you have to deal with all sorts of people; people from different cultures and backgrounds. You are bound to meet difficulties in dealing with these people. It becomes even more difficult when there are miscommunications and human errors. Therefore in order to be a lawyer, you would not only need to be smart but you also have to be resourceful and be able to communicate well with the people that you work with, to be persuasive. Time appears to be never enough for a busy lawyer. It is known that lawyers have to work long hours and I have seen lawyers working extra hours just to get the job done. It seems that in order to be a successful lawyer you would also need to manage your time well. It is getting increasingly difficult to survive in this competitive industry, the „cut-throat industry‟ as some would call it. In order to thrive, lawyers have to live up to the standards of a true professional by providing better services to the clients. If you are really good at what you do, you would not need to hunt for jobs anymore. Opportunities come to you. I was told that the only thing a lawyer can truly rely on is his/her knowledge and understanding of the law. Afterall, this is the tool of the trade. Through this programme, I have also come to an understanding that ethics are very important to a lawyer. There are legal practitioners committing criminal breach of trusts and absconding with the clients‟ money. But where is the honour of being a professional if we do not follow the code of conduct? Hopefully I would be able to carry myself well enough in the future so as not to bring shame to the profession. What do I have to say about this programme? The JHJ 360° programme is really practical and truly beneficial to a law student such as myself. I would not have been able to learn as much as I did here if I were to be anywhere else. I am proud to be an attachment student under the JHJ 360° Programme. I hope that JHJ will continue providing this great opportunity to other students in the future in order for them to experience what we have experienced. Last but not least, I just want to say: “Thank You JHJ”. Ng Chin Han LLB University of London External Programme 2011 For the past four months, it has been a great pleasure for me to participate in JHJ‟s 360° Student Attachment Programme. My JHJ experience kickstarted when I received the Book Prize Award sponsored by JHJ for LLB Part 2 Finals, which enabled me to partake in this 360° Student Attachment Programme. Prior to joining the firm, I have been informed by JHJ‟s Head of Knowledge Department and the two other Student Attachment Programme participants about the invaluable experiences one can get from this programme. Hence, I joined the program with great anticipation, hoping to gain appraisable skills and experience through the course of this programme. Expectantly, this programme have lived up to, if not went beyond my intents. The biggest impact this Attachment Program have on me perhaps is that it gave me the opportunity to get to know the legal field better. By joining the Programme, I was exposed not just to all the legal work which I couldn‟t have experienced during the course of my Law Degree or CLP study, but also to the JHJ team which is vastly experienced in the legal field. By performing legal works and mingling with the JHJ team, I have gotten to know the legal field from a different perspective. Hence for me, the Attachment Program is the first step I have taken in the effort to get to know the real legal world and I do think it‟s a really good start. Through the programme, I was given the opportunity to deal with both fictional and real legal problems. They have proved to be challenging, but this opportunity undoubtedly made a great experience. The tasks provided in the Attachment Program centered on four main areas of the legal practice, namely the Corporate, Conflict Resolution, Conveyancing and Knowledge Department. Thus by experiencing a wide variation of legal works, I grew tremendously and was challenged by new tasks on a daily basis. Learning skills and gaining experience during the course of this program was never a difficult task. This was due to the overwhelming support by all of the JHJ staff ranging from chambering students to the partners. Advice and tips to good legal practice had always been taught to us without hesitation by the JHJ team. Furthermore, I was not only exposed to legal aspects through this program, but also to the management, marketing, and many other facets of the legal field. This exposure has further broadened my view and mindset besides making me realize the importance of possessing knowledge outside the realm of legal practice. I truly believe that the knowledge in other fields will prove to be useful and of importance in the future. Legal Cauldron 2 of 2012 | 10
  • 11. JHJ Outside Work Legal Cauldron 2 of 2012 | 11
  • 12. Kuala Lumpur . Petaling Jaya . Kota Bharu . Melaka This is a publication produced by the JHJ Knowledge Department. For any inquiries, please do not hesitate to contact us: T: 03-2096 1478 | F: 03-2096 1480 | E: kd@jhj.com.my | W: www.jhj.com.my Publisher: Messrs Jayadeep Hari & Jamil, Suite 2.03 (2nd Floor), Block A, Plaza Damansara, Bukit Damansara, 50490 KL. Printers: Pressworks Enterprise, No 20, Jalan Usaha Satu 25/2A, 40400 Shah Alam.