The Federal Court issued its grounds of judgment in the Tengku Dato’ Ibrahim Petra bin Tengku Indra Petra v Petra Perdana Berhad case. This is a significant decision explaining the scope of directors’ duties. It gives guidance on when a director acts in the best interest of the company and the discretion afforded to a director when the director makes a business judgment.
This case update will set out the brief background facts of the case and the legal principles that were decided by the Federal Court. I also set out the key takeaways and points that directors should take note of. Continue reading