Appeals court overturns uncle’s claim to 238,096 shares transferred to nephew
Court says the transfer of shares was valid, while a 25-year delay and an attempt to shield assets from creditors undermined the claim.
The Court of Appeal in Malaysia has overturned a High Court ruling that favored a businessman seeking to recover 238,096 shares from his nephew. The shares, representing nearly half of Semenyih Jaya Sdn Bhd's equity, were transferred in 1995 to Low Yee Meng. The businessman, Lau Kok Loon, claimed the shares were held for his benefit, but the Court of Appeal found that a trust deed from 1990 explicitly stated the shares were held for Low, not Lau.
The delay in filing the lawsuit in 2020, about 25 years after the nephew took legal action over over RM10 million allegedly withdrawn from the company, was deemed retaliatory and defensive. The long waiting period suggested that Lau's claim was intended to obstruct bankruptcy proceedings, and granting relief could encourage debtors to hide assets instead of fulfilling their obligations.
The Court of Appeal also ruled that even if the shares were held in trust for Lau, he should not be granted relief. The nephew's legal team included Ambiga Sreenevasan, Shireen Selvaratnam, Ivanpal Singh Grewal, Derrick Chan, Brandon Toh, and Edward Lee, while Lau was represented by Porres Royan, Alex Tan, and Cheah Kha Mun.
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- Appeals court overturns uncle’s claim to 238,096 shares transferred to nephew freemalaysiatoday.com
