Abstract :
The case under review, Mohd Shuaib Ishak v. Celcom (M) Bhd., is the first reported case in Malaysia where the court has granted leave to an individual shareholder to commence a statutory derivative action. By an amendment made to the Companies Act 1965, Section 181A which came into force on 15 August 2007, 3 enables current and former members and directors of a company to bring an action on behalf of the company to enforce the company s right, or intervene in proceedings to which the company is a party. This action, known as the statutory derivative action, was introduced to rectify the inadequacies of the common law derivative action.Aderivative action is an action brought by a member on behalf of a company or where a member steps into the shoes of the company to enforce the company s right.
