GEORGE TOWN: THE High Court today dismissed a suit by the Seh Tek Tong Cheah Kongsi against Hokkien Kongsi Penang, which had rejected the former's nomination of its chairman Cheah Swee Huat into the clan's board of trustees three years ago.
High Court Judge Datuk Mohd Zaki Md Yasin, in his judgment, ruled that the Rules of the Hokkien Kongsi clearly stated that its trustees can decide on the majority vote.
In the Rules of the Hokkien Kongsi, Rule 9 provides that questions arising out of any matter shall be decided by a majority of votes.
He dismissed the suit with RM20,000 costs.
Cheah Kongsi was represented by R.J. Manecksha and Han Chin Ling, while the Hokkien Kongsi was represented by Daphne Choy.
Hokkien Kongsi's trustee Tan Lye Hock, who was present in court, welcomed the decision and expressed hope that the matter can be put to rest.
"Since the establishment of the Hokkien Kongsi 159 years ago, this is the first time we have had to settle a disagreement in court.
"In actual fact, we can resolve matters internally, as we are brothers," he told reporters.
As for Swee Huat, he said he has yet to decide whether to appeal the decision, stating that he would decide after the Cheah Kongsi's board of trustees meeting.
Cheah Kongsi had sought a declaration that the refusal to accept its chairman Cheah Swee Huat into the Hokkien Kongsi Board of Trustees, is wrong and in violation of the clan’s rules, as well as the rules of natural justice.
It had also sought an order that the Hokkien Kongsi accept the nomination of Swee Huat or any other nominee of Cheah Kongsi into its board.
Hokkien Kongsi, in its court documents, had maintained that the rules of Hokkien Kongsi Penang empower the trustees to vote on and reject any nomination.
It stated that votes had been taken on two meetings on Aug 26, 2011 and Jan 8, 2012, and that on both meetings, the nominations were rejected by an overwhelming majority vote.
The Hokkien Kongsi consists of five kongsis, namely Khoo, Cheah, Tan, Lim and Yeoh, and its governing body is made up of four trustees from each kongsi, making it a total of 20 trustees.