Tuesday, 19 September 2017 | MYT 4:48 PM
High Court grants leave to 325 people seeking to sue True Fitness companies
PETALING JAYA: The High Court has granted leave to 325 former employees and members of True Fitness seeking to sue the company for abruptly shutting down its operations.
With this, the former clients and staff can commence civil action against two of the six True Fitness entities that operated the brand, True Fitness Sdn Bhd and True Haven Sdn Bhd.
Justice Mohamed Zaini Mazlin granted the leave application last Thursday under Section 471 of the Companies Act 2016 to allow the suit to take place as a class action in the civil court
The 325 had previously filed applications under both Section 471 and Section 540 of the Companies Act 2016 for fraudulent trading.
"The learned judge did not grant the Section 540 application as we believe he felt that we would be able to examine the directors during the commencement of the civil trial," said the legal firm Dee, Netto, Fatimah & Ng which is representing the 325 pro bono,
The firm added that the 325 are waiting for the decision on their leave application to commence civil proceedings against the other four companies.
High Court judge Justice Lau Bee Lan is expected to hand down her decision on the application on Wednesday.
The other companies are Truest Sdn Bhd, True Fitness World Sdn Bhd, True Yoga Sdn Bhd and Fitness Growth Sdn Bhd.
True Fitness Malaysia had announced on June 9 that it had ceased all operations of its three gym and spa facilities as they were "no longer financially viable" due to evolving market conditions.
It was previously reported that the closure of True Fitness branches in Malaysia and Thailand was required under the franchise agreement between Singapore-based parent company True Group and Chinese investor Tongfang Kontafarma Holdings Ltd.