December 9, 2012

ARE COMPANY DIRECTORS EMPLOYEES?

The above question was answered in the case of Inchcape Malaysia Holdings Bhd v R.B Gray [1985] 2 MLJ 297 . It was held that a director cannot be a workman because a director was the very brain of the Company or the directing mind determining and formulating the  Company's policy.

What the above decision means is that the Director does not come under the IRA 1967 and therefore the remedies available under in the Industrial court are not available to him.He has to file a case in the Civil Courts.

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