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Property News

Court rules FGV’s former chairman, ex-CEO wrongfully used luxury condos

KUALA LUMPUR (March 29): FGV Holdings Bhd’s former chairman Tan Sri Mohd Isa Abdul Samad and its former chief executive Datuk Mohd Emir Mavani Abdullah wrongfully used two luxury condominium units acquired by the company, the High Court ruled on Friday.
The use and refurbishment of The Troika units located in Kuala Lumpur city centre contravened company procedures, High Court judge Datuk Mohd Arief Emran Arifin said, and ordered Mohd Isa to pay RM990,502 to FGV and Mohd Emir to reimburse RM2.32 million to the company.
The amount to be paid includes exemplary damages — RM300,000 by Mohd Isa and RM500,000 by Mohd Emir — given their positions within the company, the judge noted.
The decision caps a lawsuit filed in November 2018 which alleges Mohd Isa and Mohd Emir had taken steps that led to the acquisition of The Troika condominium units originally meant for the accommodation of FGV’s business associates or guests.
However, after the units were bought, they were renovated, furnished, and maintained for the use of Mohd Isa and Mohd Emir and their family members.
On Friday, the court found that the duo had not acted in FGV’s interest when it came to the use and refurbishment of these units.
“They have also put their interest in conflict with the company and did not act in the best interest of the plaintiff,” the High Court judge ruled.
‘Purchase of units were in line with board’s resolution’
The court, however, also ruled that the duo did not breach their duties as the mere purchases of the units were in line with the board’s resolution.
With regards to the purchase, Mohd Emran ruled that FGV failed to prove that the duo had breached their duty, and noted that FGV still owned the units.
“Secondly … the company has not suffered any damages over the acquisition of The Troika units as [they] are still owned by the plaintiff and no losses have been realised,” he said.
Mohd Emir breached duties by abusing FGV’s carpool and petrol card systems
The court also found that Mohd Emir had breached his duties by abusing the company’s carpool system and use of petrol cards.
The court awarded RM200,000 in costs per defendant.
The group was claiming RM5.134 million from the duo for the purchase of the condominiums, and another RM3.283 million from Mohd Emir for the alleged misuse of five company cars and petrol benefits.
Lawyers Andrew Chiew and Hoi Jack S’ng appeared for FGV, while Mohd Isa was represented by Lavinia Kumaraendran and Mavinthra Jothy Thillainathan. Mohd Emir was represented by Lawrence Hisham and Abdul Rahim Abd Hadi.
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Source: EdgeProp.my

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