HEADLINES

High Court sets May 20 to rule on Mahmud Abu Bekir’s director rights in Cahya Mata Sarawak dispute

Decision will determine if he can challenge the company’s injunction in bringing a derivative action

8:00 PM MYT

 

KUCHING – The High Court here has scheduled May 20 to deliver its ruling on preliminary objections in a legal dispute between Cahya Mata Sarawak Berhad and Datuk Seri Mahmud Abu Bekir Taib.

The case was heard today by High Court Judge Datuk Faridz Gohim Abdullah.

Cahya Mata Sarawak is represented by Alvin Chong & Partners Advocates, while Mahmud is represented by Sandhu & Co Advocates.

The court ordered that responses to the preliminary objections be submitted by May 18, with any replies due by May 19. The decision is expected at 9am on May 20.

The dispute arose on April 2 when Mahmud, a director of Cahya Mata Sarawak, filed an originating summons following his redesignation within the company’s board amid ongoing disagreements.

He is seeking court declarations on his rights as a board member, including confirmation of his right to attend and participate in board meetings and guidance on when he must recuse himself from discussions involving matters in which he may have a conflict of interest.

Mahmud is also contesting his exclusion from certain board and committee meetings and is seeking access to previous board meeting minutes, along with directions on structuring future board agendas when legal matters are involved.

On April 30, Cahya Mata Sarawak obtained an ex parte quia timet injunction to prevent Mahmud from filing, initiating, or continuing a proposed derivative action against the company.

A derivative action permits a shareholder to sue on behalf of the company, usually where it is claimed the company has suffered losses due to board actions or decisions.

The injunction is now being contested through preliminary objections, which the court must first resolve before proceeding to the main injunction hearing.

The High Court’s decision on May 20 will determine the next steps in the proceedings. – May 13, 2026

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