What specific breaches of duty led to the RM3.4 million payout order?

Question

Accepted Answer

Former MARA Corp CEO Ordered to Pay RM3.4 Million Following Breach of Duty Findings

The Court of Appeal has affirmed a High Court decision mandating former Majlis Amanah Rakyat Corporation Sdn Bhd (MARA Corporation) group chief executive officer Datuk Badlisyah Abdul Ghani to pay RM3.4 million to the company. This substantial payout stems from findings that he breached his contractual, fiduciary, and statutory duties during his tenure. The appellate court dismissed Badlisyah's appeal, upholding the High Court's initial ruling that he failed to act in the best interests of MARA Corporation.
Failure to Secure Board Approval for Staff Hires

A primary breach identified by the courts involved the hiring of 25 employees. As group CEO, Badlisyah was expected to ensure such significant staffing decisions were presented to the Board of Directors (BOD) for their explicit approval before proceeding. The court found that he failed to adhere to this crucial governance step, thereby contravening his duty to MARA Corporation.
Suspicious Timing and Manner of Hiring

The hiring of these 25 employees within a compressed timeframe of two months, and notably within the first two weeks of Badlisyah's commencement of employment on September 8, 2020, raised serious concerns. The court concluded that the timing, haste, and secretive nature of these appointments fell outside the reasonable scope of conducting MARA Corporation's business in good faith, indicating a potential disregard for proper procedure.
Financial Impact and Misrepresentation Allegations

The court agreed with the High Court's assessment that the rapid hiring of the 25 employees resulted in a tangible financial impact on MARA Corporation. Furthermore, the company's suit had alleged other breaches, including misrepresentations made to the Board Nomination and Remuneration Committee (BNRC) concerning the appointments of four specific employees, adding to the grounds for the legal action. The final payout ordered by the High Court on May 20, 2024, includes specific sums of RM2,728,673.82 and RM739,541.60, alongside an indemnity for industrial relations expenses.

Reading history

Hide →

This history is cleared when the page is closed.

What specific breaches of duty led to the RM3.4 million payout order?

Loading

Was this article helpful?

Helpful

Not helpful

Report an issue

1

0

0

Share with friends