KUALA LUMPUR: Two former company director-cum-employees have been awarded about RM2 million in compensation for unfair dismissal by Acexide Technology Sdn Bhd after serving for 23 years.
A Court of Appeal three member panel led by judge Datuk Lee Swee Seng awarded RM893,000 to Woon Kim Choy, a former technical director, and RM1.151 million to Chang Heng Keong, an ex-project director.
Lee, who sat with Datuk Azimah Omar and Datuk Azizul Azmi Adnan, ruled that it was not feasible to reinstate to their posts with the company where Woon and Chang each drew monthly salaries of RM19,000 and RM24,500, including allowances.
The company is involved in the installation and maintenance of fire lighting systems, trenchless technology and transportation.
FMT reported that the panel also ordered the company to pay an interest of 8 per cent per annum on the sums awarded, calculated from Aug 9,2022 until full settlement.
Lee also ordered the company to pay RM20,000 in costs to Woon and Chang.
The awards came after the court allowed Woon and Chang's appeals and quashed the dismissal of their claims by the Industrial Court.
"We have set aside the order of the High Court and made an order for compensation in lieu of reinstatement," said Lee in his 37-page judgement.
Lee ruled that although Woon and Chang were company directors, they were also "workmen" within the meaning of the Industrial Relations Act 1967 and the Industrial Court had jurisdiction to hear their unfair dismissal complaints.
The panel ruled that as "workmen", they were entitled to seek the remedy of reinstatement or compensation in lieu of reinstatement as the Industrial Court had jurisdiction to hear the dispute.
Lee said the employer failed to prove their alleged misconduct rendering their dismissals to be without just cause or excuse.
"There was no show-cause letter nor any domestic inquiry held nor any evidence adduced at the Industrial Court to justify their dismissal," said Lee.
The duo, together with Lim, were promoters of the company incorporated in 1996, and later became shareholders.
Lim and his son, Jovin, were the majority shareholders with 54 per cent equity, while Woon had 10 per cent and Chang 36 per cent.
Lim and Jovin, by sheer strength of their majority shareholding, convened an extraordinary general meeting on Nov 6, 2019 to remove both Woon and Chang as company directors.
The judge said shareholders possess unfettered discretion to remove directors and that judicial intervention was unwarranted as long as the removal process adhered to statutory requirements and the company's constitution.
However, Woon and Chang filed a complaint at the industrial relations department claiming to have been unlawfully dismissed from their employment with the company.
He said the company had treated the duo as its employees, as evidenced by their listing in the register of employees and statutory contributions made on their behalf.
Lee said Woon and Chang's removal as directors did not affect their status as employees of the company.