Judicial commissioner Aimi Zaini Azhar dismissed an appeal by Koperasi Sekolah-Sekolah Tamil Kedah Bhd (Kopstak) and affirmed that the expulsion of B Kusealen at its annual general meeting last year did not follow the cooperative’s own rules.

Aimi said even if it was true that Kusealen allegedly broke conflict-of-interest rules by taking a loan from the cooperative while serving as its chairman, Kopstak still needed to follow the right procedure when taking disciplinary action.

“Due process cannot be ignored,” he said, ordering Kopstak to pay RM4,000 in costs to Kusealen.

Kopstak had accused Kusealen of poor management and unauthorised financial dealings between 2015 and 2019 before removing him as its chairman at its AGM last year.

Kusealen denied all claims of wrongdoing and said the vote to remove him was illegal and the AGM did not have a quorum.

In April, the Cooperatives Tribunal ruled that Kusealen’s removal breached a Kopstak by-law that requires members to be given clear notice, the right to be heard, and for a properly recorded vote to be held before any expulsion.

The tribunal ordered that Kusealen’s membership be reinstated.

Kusealan’s lawyer, S Sagthiyaraj, said the decision might serve as a precedent for thousands of other registered societies, especially those managing school, housing and community funds.