Question
Mr Lai is the sole member and director of a company known as Tegas Maju Sdn Bhd (TMSB) in Klang, Selangor. The company involves in
Mr Lai is the sole member and director of a company known as Tegas Maju Sdn Bhd (TMSB) in Klang, Selangor. The company involves in a logistic business activities such as operating warehouse and transporting goods from the warehouse to ports and other destinations as well in Malaysia. TMSB employs 50 people to manage its business activities.
Subsequently, Malaysia was hit by economic downturn and TMSB was also affected by the slowdown in the economy. The company suffered many logistics cancellation and this has resulted in the drop of the company's income. TMSB later retrenched half of its employees to sustain its business. The retrenched staffs were not happy with the retrenchment benefits and they took a legal action against TMSB in an Industrial Court. The Industrial Court awarded the retrenched staff an appropriate retrenchment benefits.
TMSB later failed to comply with the order to pay the retrenchment benefits and the Industrial Court made an order that Mr Lai was liable to pay the benefits. Mr Lai is not satisfied with the order made by the Industrial Court against him.
Please advise Mr Lai on his legal position. Give reasons for your answer with relevant legal provisions and TWO (2) decided case law.
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