By Shikin Louis
KUCHING, May 20: The High Court here today dismissed preliminary objections raised by Datuk Seri Mahmud Abu Bekir Taib in an ongoing injunction dispute involving Cahya Mata Sarawak Berhad (Cahya Mata).
The objections sought to challenge court proceedings linked to an injunction obtained by Cahya Mata to restrain Mahmud from filing or continuing a proposed derivative action against the company.
The matter came before High Court Judge Datuk Faridz Gohim Abdullah.
Lawyer Satinder Sandhu, who appeared for Mahmud, said the court rejected his client’s preliminary objections and directed that a formal affidavit in opposition and/or application to set aside the injunction be filed.
“Mahmud is to file his affidavit in opposition by June 8, while Cahya Mata is to file its reply affidavit by June 29.
“Written submissions are to be filed by July 13, with reply submissions due on July 27,” he said when contacted.
The court has fixed Aug 18 for the hearing of the injunction application.
In the meantime, the ad-interim injunction will remain in force pending completion of the proceedings.
The dispute began on April 2 when Mahmud, a director of Cahya Mata, filed an originating summons at the High Court following disagreements over his role within the company’s board structure amid ongoing boardroom disputes.
He is seeking court declarations over his rights as a board member, including confirmation of his right to attend and participate in board meetings, and clarification on when he must recuse himself from discussions involving matters where there may be a conflict of interest.
He is also challenging his exclusion from certain board and committee meetings, and seeking access to past board meeting minutes, as well as directions on how future board agendas should be structured when legal matters are involved.
Before Mahmud could proceed further, Cahya Mata on April 30 obtained an ex parte quia timet injunction to restrain him from filing, initiating or continuing a proposed derivative action against the company.
A derivative action allows a director or shareholder to initiate legal proceedings on behalf of a company, usually where it is alleged that the company has suffered losses arising from actions or decisions of its board. — DayakDaily
