KUALA LUMPUR: Fugitive businessman Low Taek Jho, or Jho Low, was the shadow director of 1Malaysia Development Bhd (1MDB) and its subsidiaries as he ran the company as a proxy of former prime minister Datuk Seri Najib Razak, the company claimed.

       The sovereign wealth fund made the assertion in a reply to Low’s statement of defence in a lawsuit it filed with four subsidiaries against Low and five others.

       In the court document filed by Messrs Skrine on Feb 23, 1MDB said Low was a proxy and associate of Najib, who was a shadow director of 1MDB, as the directors of the companies were accustomed to acting upon his (Najib’s) instructions and directions.

       “Accordingly, the first defendant (Low) as the proxy and associate of Najib in giving instructions and directions to the board and senior management of 1MDB, was also at all material times a shadow director of the companies.

       “Hence, Low also owed the plaintiffs fiduciary duties and was at all material times a trustee of the plaintiffs’ assets,” it said.

       1MDB also contended that Low had procured his proxies to work in the company and its subsidiaries, including Terrence Geh, Casey Tang, Nik Faisal Ariff Kamil and Jasmine Loo who were all his cohorts.

       “The said proxies occupy key senior management positions in 1MDB to monitor the management and 1MDB’s board, implement key decisions in accordance with Low and Najib’s wishes to facilitate the utilisations of 1MDB’s funds in accordance with Low and Najib’s fraudulent intentions,” it said.

       The company further asserted that Low had received funds belonging to 1MDB and its subsidiaries when he knew or ought to have known that the said funds belonged to the companies and were directed to him in breach of trust and fiduciary duties.

       In May last year, 1MDB and subsidiaries 1MDB Energy Holdings Limited, 1MDB Energy Limited, 1MDB Energy (Langat) Limited and Global Diversified Investment Company Limited, formerly known as 1MDB Global Investments Limited, filed a US$3.7837bil (RM15.75bil) suit against Low, his parents Tan Sri Larry Low Hock Peng and Puan Sri Goh Gaik Ewe, his sister May Lin, his younger brother Taek Szen and his associate Eric Tan Kim Loong.

       The lawsuit is among 22 civil actions launched by 1MDB and its former subsidiary SRC International Sdn Bhd last year to recoup billions of dollars against key figures central to the 1MDB scandal.

       Last month, Low filed his statement of defence, stating that he did not hold any official positions in 1MDB or its four subsidiaries.

       Low said the lawsuit should be dismissed as it failed to disclose a reasonable cause of action over the allegation of breach of trust or fiduciary duty.

       He further stated that he was never a director or shareholder in 1MDB, its four subsidiaries, or even a member of its board of advisers or part of the management team of any of the plaintiffs.

       Low, who is still at large, is represented by law firm Valen, Oh & Partners.

       The High Court fixed March 16 for online case management of the lawsuit.