Directors could resign if they did not agree with the SRC’s instructions, Najib told the court

KUALA LUMPUR: Any director of a company who disagreed with the management of SRC International Sdn Bhd had the right to leave the company, the High Court has heard.

Datuk Seri Najib Razak said this happened to former 1Malaysia Development Bhd (1MDB) chairman Tan Sri Mohd Bakke Salleh, who resigned from the sovereign wealth fund in 2009 in protest.

“If you are (one of) the board members and you do not agree with what the company decides or (what) you perceive as government instructions, then you have the right to leave the company. I assume the worst situation,” he said.

Mohd Bakke, who was a witness in the 1MDB bribery case, was reported to have testified that he left 1MDB due to suspicions that something was wrong with the company’s operations.

Najib was present under cross-examination by lawyer Datuk Dr Gurdyal Singh Nijjar, who represents third-party defendant and former SRC director Datuk Suboh Md Yassin, at the hearing of the suit filed by SRC against Najib and former CEO Nik Faisal Ariff. Kamil.

Gurdyal was asking Najib about the withdrawal of RM2bil from SRC and his expectations regarding how the directors were expected to act in accordance with the instructions allegedly given to Najib as the sole shareholder of SRC.

Najib said that for the transfer to take place, investment had to be imminent.

Those who disagreed with the company could resign or meet with him to protest, Najib said.

“Look, I don’t agree with what you’re asking of us. There are grounds for further discussion and decision on this issue.

“I, as Prime Minister, will not do anything against the interests of the company as I have taken an oath in accordance with the Constitution,” he said.

Under new management, SRC filed the lawsuit in May 2021, alleging that Najib committed a breach of trust, abuse of power, misappropriated company funds and received personal benefit from it.

In his suit, he named Najib along with his former directors Subo, Mohammed Azhar Osman Khairuddin, Nik Faisal, Datuk Che Abdullah @ Rashidi Che Omar, Datuk Shahrol Azral Ibrahim Halmi and Tan Sri Ismi Ismail.

However, it later dropped six names from the suit and retained Najib and Nik Faisal as the first and second defendants.

In addition, Najib has named the former directors of SRC International, named above, as third-party defendants in the suit.

The company is seeking damages, interest, costs and a declaration that Najib is liable for the company’s losses due to his breach of duty and trust, and is seeking that Najib pay damages of US$1.18 billion for the company’s losses.

It also seeks US$120 million and US$2 million respectively from Najib and Nick Faisal for fraudulent breach of fiduciary duty and breach of trust.

The trial before Judge Ahmad Fairuz Zainol Abidin will continue on Thursday.