Based on the facts of the case, Stone Master had entered into agency agreements with 23 foreign companies for the exclusive rights to market and promote products belonging to these foreign companies. In consideration of these exclusive rights, Stone Master had paid the purported local representatives of these companies a sum amounting to RM11.59 million in the form of a non-refundable deposit. The SC has shown that of the RM11.59 million, a sum of RM11.54 million was subsequently paid by the purported local representatives to Chan’s personal account, thereby causing wrongful loss to Stone Master.

In delivering his judgement, Justice Mohamed Zaini bin Mazlan ordered Chan to pay the SC the sum of RM11.54 million, which is to be held in trust for Stone Master. In addition, Chan was ordered to pay a RM1 million civil penalty and is barred from being a director of a public-listed company for five years.