KUALA LUMPUR: Hartalega Holdings Bhd has won its lawsuit against former executive director Dr Danaraj Nadarajah for breach of his fiduciary duties and contract of employment,
The High Court of Shah Alam found that Danaraj had breached Section 317A of the Capital Markets and Services Act, which prohibits a director or an officer of a listed corporation from causing wrongful loss to the company.
The court also ruled that the defendant had breached Sections 213 and 218 of the Companies Act that are related to the duties and responsibilities of directors, and the prohibition against improper use of property and position, among others, for self gain.
Following the decision, Hartalega in a filing with Bursa Malaysia Securities on Thursday said it will lodge complaints to the Securities Commission (SC) and the Companies Commission of Malaysia (SSM) against Danaraj.
"In view of the Honourable High Court's findings of the breaches by the defendant of Section 317A of the Capital Markets and Services Act 2007, Section 213 and Section 218 of the Companies Act 2016, the company shall consult its solicitors on the next course of action in relation to lodging complaints to the SC and to SSM respectively," it said.
Hartalega and two of its subsidiaries, Hartalega Sdn Bhd and Mun Health Product (India) Pvt Ltd, filed the civil suit against Danaraj in Dec 30, 2020, alleging that he set up a competing business using Mun Health Product's resources during his tenure with Hartalega.
According to Hartalega's 2019 annual report, Danaraj, held the position of executive director from July 4, 2011 until July 1, 2020.
He was in charge of the subsidiaries in China and India, where he was also an equity partner.
Hartalega's share price closed at RM2.45 on Thursday, valuing it at RM8.4 billion.