Glorious Film Sdn. Bhd. (GF) is a holding company of Glorious Properties Sdn. Bhd. (GP). GF involved in filming business while GP involved in providing properties and equipment. Both companies managed their businesses like one. GP's business suffered financial problems. Due to this, Bill and Sam, two workers of GP had not been paid salary for five months. When complaint was made, both of them had been laid off. Bill and Sam claimed compensation from GP on the ground that their services had been terminated against their contract of service. Their claimed was not entertained by GP. Bill and Sam now claimed against GF, the holding company of GP.According to them, a holding company was responsible for the act of its subsidiary.

Tuan Bakhil, the owner of a premise in which GP's business was operated, claimed for rental payment. GP has not been paying him for several months already. However, the directors of GP denied any liability as rental agreement was made between Tuan Bakhil and James before GP was incorporated.

In the meantime, GF's constitution provides that any conflict between the members and the company must be referred to the mediator. If the conflict cannot be settled through mediation, then they can bring the conflict to court. Aeron, one of the members of GF was not satisfied with the act of GF and bring the matter to court. GF was not satisfied with the action taken by Aeron.

Advise all the parties.