(vi) any balance after the above payments are made was agreed to be equally distributed between the plaintiff and the first defendant. [16] In this regard, it appears that the first defendant testified during cross-examination that the plaintiff had merely been given the title and role of Head of Department but it was not a promotion. It was further alleged that the plaintiff remained as a real estate negotiator. [17] Starting with its point of view, the first defendant claims that MIP Properties started a new department sometime in 2012 or 2013 known as the Primary Market Division. The newly formed department would handle the sale of newly developed properties for which MIP Properties would act as an agent for property developers to market their properties. [18] This led to the plaintiff being appointed as the Business Development Manager of the Primary Market Division as part of its establishment. He was later appointed as Head of Department, receiving RM3,000.00 per month, which was later increased to RM5,000,00. [19] In addition to the prior REN contract, the plaintiff entered into a second agreement with MIP Properties known as the Contract for Service as Real Estate Negotiator on 21.1.2014 with the following terms: "PROFESSIONAL FEES The Company shall determine the professional fees to be charged to clients for any services performed. When the REAL ESTATE NEGOTIATOR performs any service whereby the professional fees is earned, the professional fees when collected shall be divided between the Company and the REAL ESTATE NEGOTIATOR in the manner as stated herein. The Company reserves the right to make special arrangements regarding the division of the professional fees. In the event of controversy over the payment of professional fees, the Company shall make a decision regarding the division, and this decision shall be final. In no case shall the Company be personally liable to the REAL ESTATE NEGOTIATOR for his/her professional fees. Distribution of the earned professional fees paid or to be collected by the said Company, shall take place after collection of such professional fees from the party or parties for whom the services may have been performed. PROFESSIONAL FEES: For sale or rental or leasing or auction of properties on Residential, Commercial, Agricultural, Industrial and others. The Real Estate Negotiator's professional fees is based on a flat rate of 40% and will be calculated subject to professional fees collected or as determined by the Company. However this will NOT be subjected to deductions for contributions to the Statutory Funds." [20] As a result of the above terms, the first defendant claims that the plaintiff was only entitled to receive a flat commission rate of 40% on all real estate deals closed by him. In this regard and contrary to the plaintiff's position, the first defendant asserts that the position as the Head of Department was merely a part of the plaintiff's role as a real estate negotiator, and thus, the only applicable and binding contracts between the plaintiff and the first defendant are the REN agreements made in 2008 and 2014. As far as the first defendant is concerned, that is all there is to it. [21] Having reviewed the evidence before me, I am not in a position to downplay the plaintiff's roles and responsibilities at MIP Properties. First of all, in the company profile for MIP Properties, there were only three individuals mentioned and they were the first defendant and DW2, along with the plaintiff himself, who had been portrayed as having achieved excellent sales results that earned him some top accolades. At that time, there were about 50 other real estate negotiators but none of them appeared alongside the first defendant and DW2. As of then, the plaintiff was a Business Development Manager for the Primary Market Division. Also featured was DW2's role as General Manager and Head of Mass Market Division. It should be clarified at this point that DW2 is the wife of the first defendant. She is also known as Abby Lum. In addition, she owns shares in the second defendant. [22] With regard to this, neither the existence of this company profile nor the plaintiff's designation as Business Development Manager are in dispute. In other words, his designation indicates that he was not merely a real estate negotiator. Having now established that the plaintiff once held the position of Business Development Manager, there is no reason for me not to acknowledge that the plaintiff was promoted to the position of Head of Department. [23] From this perspective, I note that the position of Head of Department was more than just an extension of a real estate negotiator's duties, as it came with some powers and additional benefits, such as the right to enter into contracts with other third parties, including developers, on behalf of MIP Properties. It cannot be denied that there were only two divisions within MIP Properties: the Mass Market Division and the Primary Market Division. This illustrates how vital the plaintiff was to MIP Properties. A mere real estate negotiator would not be involved with such responsibilities. In this regard, I do not accept the first defendant's contention to downplay the plaintiff's position as there was nothing credible before the court to address such an argument. [24] It is not without foundation that these findings have been made. Evidence shows that a number of contracts were signed by the plaintiff with other third parties while he was the Head of Department of MIP Properties, including a Real Estate Agency Agreement with Indo Aman Bina Sdn Bhd for a development known as Ativo Suites, a Contract for the Appointment of a Sales Agency for MET Corporate Towers with Triterra Sdn Bhd and a Contract for the Appointment of MIP Properties as property agent for the sale of Project Solaris PARQ with UEM Sunrise Berhad. In addition to this, there were instances where a number of other contracts were also addressed directly to the plaintiff by the third parties for consideration, including the appointment of MIP Properties as a sales agent. [25] Furthermore, despite the plaintiff's explicit description of his duties and responsibilities as a head of department, including pitching for work and marketing activities, strategising sales campaigns and discussions with the developers on sales progress, as well as assembling the sales team for all of those activities, I am of the opinion that none of these facts were challenged by the defendants, leaving me with the impression that they stand as they do. Also, the plaintiff appears to be managing the department's expenses and budgeting together with DW2. It is further demonstrated that the plaintiff had a business card with the designation of Head of Department of Primary Market Division which I have no doubt had been issued by MIP Properties given the facts surrounding the case as highlighted above. [26] The conclusion I have drawn is further strengthened by the fact that, despite the defendants' denial in their defence that the plaintiff was MIP Properties' Head of Department for the Primary Market Division and that he was merely a real estate negotiator, the defendants have, nevertheless, diverted their focus of arguments when the first defendant admitted during cross-examination that the plaintiff was indeed the head of such department. Although this is the case, the first defendant refused to admit during cross-examination that his defence that the plaintiff did not serve as a head of department was incorrect. I note that contradicting a party's position in a pleading with his own testimony can make that party unreliable. The credibility of the first defendant's testimony is further impacted by this. [27] Next, moving on to the issue of whether there was a revenue-sharing agreement between the plaintiff and the first defendant, it is alleged by the first defendant that it had occasionally made special arrangements with the relevant negotiators working for MIP Properties regarding the distribution of their professional fees. These special arrangements, according to the first defendant, were in the form of incentive payments to incentivise negotiators to close more deals. Therefore, the plaintiff was fully compensated for his services when he received a 40% commission from MIP Properties for all transactions he closed. Due to this, any other payments made in addition to that 40% fall under these special arrangements. In this regard, the first defendant rely on some calculations generated by an excel document to show that the plaintiff had been properly paid. [28] Having examined the positions taken by the parties, I find that there is enough evidence before the court to demonstrate the existence of such a revenue-sharing agreement between the plaintiff and the first defendant. Although there is no black-and-white description of its exact terms and calculation, this does not mean that such an agreement did not exist taking into account the following circumstances surrounding the case. [29] Regarding this, the testimony of DW2 lends credence to the existence of such a mutual arrangement between the plaintiff and the first defendant, as well as emails and WhatsApp communications between the parties that specifically mentioned 'profit sharing'. There is no indication in these emails and WhatsApp communications that a revenue-sharing agreement is not in place. The first email I believe that acknowledges the existence of this revenue-sharing [30] Also, DW2 and the plaintiff exchanged WhatsApp messages about the [31] Further, there were emails exchanged by the plaintiff showing that the plaintiff was requesting payment under the revenue-sharing agreement which [32] Based on the overall analysis of the above documents, it is evident that each document speaks for itself. Aside from that, DW2, in her testimony, acknowledged that she received the above first-mentioned email from the plaintiff. She further agreed that there appeared to be some kind of profit sharing, but when pressed by the plaintiff's learned counsel during cross-examination on the content of such an email, her answer was that she could not remember. Nonetheless, she agreed that the figure of 4% mentioned in the above emails and WhatsApp messages above was a calculation agreed between the first defendant and the plaintiff. It is also important to note that the plaintiff was never cross-examined by the first defendant regarding the composition of this email. The first defendant also failed to provide an alternative version of the narrative offered by the plaintiff. Therefore, this email has not been disputed and proves that the plaintiff and the first defendant did indeed have a revenue-sharing agreement. [33] Furthermore, the 4% to 7% figures mentioned in evidence as reflected in the above documents, and not denied by DW2, could not have been made up out of thin air. There must be some kind of foundation for it. This is especially true when the plaintiff was the one who appeared to have knowledge of the source of those profits made by the Primary Market Division and the precise percentage distribution amongst the relevant parties, particularly DW1. Nothing before the court shows that this was objected to back then. In light of this, even if the REN Contract is silent on this matter as suggested by DW2, the evidence presented during the trial suggests that such a profit-sharing agreement existed. This goes beyond REN's contract. To this end, despite the first defendant's efforts to suggest that there is a special arrangement, the evidence before the court does not support this claim. [34] I would like to conclude this point by addressing one issue. As highlighted above, the first defendant relied on calculations generated by an excel document to show that the plaintiff had been properly paid. Although this is the case, I am unable to accept the accuracy of such calculations since no source documents were provided for my verification. As it stands, it's nothing more than some calculations on an excel sheet. [35] In light of the above, it would be reasonable to hold that the revenue-sharing agreement was breached in the event of non-payment. [41] In relation to whether section 22C of Act 242 barred the plaintiff's claim, the first defendant argues that the plaintiff who is not a registered agent cannot receive a commission for the services rendered by him as a real estate agent. To support his claim, the first defendant cites the case of Poh Chat Jing v. Chua Joo Cheng @ Chua Su Yin [2015] 4 CLJ 1107; [2014] MLRHU 955 in which Yeoh Wee Siam J (as Her Ladyship then was) observed: [121] The acts carried out by the Plaintiff show that he had undertaken the work of an estate agent within the meaning of "estate agency practice" under s 2 of the VAEA. The alleged LOA was purportedly entered into on 20 July 2011, before the amendments were introduced by PU(A) A1404. However, the Plaintiff's performance of his job as an estate agent was after the date of coming into force of the above amendments. Therefore, the work purportedly done by the Plaintiff for which he claims commission and/or a fee in the form of a professional fee falls within the ambit of the amended definition of "estate agency practice". [43] In my analysis of section 22C of Act 242, I find that based on the factual circumstances that led to my conclusion regarding the existence of a revenue-sharing agreement, section 22C of Act 242 does not bar the plaintiff's claim. There is no evidence before the court that the plaintiff practiced or carried on business as an estate agent in this case. Furthermore, the plaintiff is not claiming revenue sharing as an estate agent who provided any professional advice or services. [44] Aside from Poh Chat Jing v. Chua Joo Cheng @ Chua Su Yin [2015] 4 CLJ 1107; [2014] MLRHU 955, where it was held that the actions taken by the plaintiff in that case indicated that he was an estate agent, the case of Matad Sdn Bhd v. Ng Chee Keong [2004] 2 CLJ 99 should also be referred to as a guidance. Gopal Sri Ram JCA (later FCJ), in delivering the judgment of the Court of Appeal on a similar issue under section 22C of Act 242, observed at p 105 that: With respect, we are unable to accept these submissions. They overlook the passage in the joint judgment in Gibb v. Federal Commissioner for Taxation to which we have already referred. Equally, they overlook the well-settled principle that words appearing in a section in a statute must be read in their proper context. This is in accordance with well settled guidelines for the interpretation of statutes. We will, later in this judgment, refer to authority that supports our view. What we need say for the present is that the word "acting" in the definition clause must be read contextually, that is to say, in the context of s. 22C. That section contemplates someone who "practises as" or who may "carry on business" as "an estate agent". (See s. 22C(1a) and (aa)). Special notice should also be taken of the use of the word "practise" in the opening words of s. 22C(1). Two points need to be made immediately. First, the section uses language that requires some system. Words such as "practise", "carry on business" point to a course of conduct: not to an isolated act. It is not unlike the Moneylenders Act cases. There too, a course of conduct or system is called for: see, Yeep Mooi v. Chu Chin Chua & Ors [1960] CLJU 169; [1981] 1 MLJ 14; Shamsudin v. Vijeyacone [1969] CLJU 171; [1971] 1 MLJ 7. It follows that the High Court did not fall into error by seeking assistance from those cases. Secondly, the section uses the term "estate agent". It is thus clear that the Act requires an estate agency relationship to exist between parties. In the absence of such a relationship the Act has no application. Whether such a relationship exists in a given case is a question of fact depending upon the facts and circumstances of each case. [45] Due to this, no real estate agency relationship existed between the plaintiff and the first defendant. This action appears to be brought solely in the plaintiff's capacity as head of the Primary Market Division. Therefore, section 22C of Act 242 does not bar the plaintiff's claim. [46] As for whether or not the plaintiff's claim is illegal under Rule 91(1) and (2) of the Rules, the plaintiff argues that the defendants have not provided any evidence that the plaintiff's claim exceeds 40% of the professional fee for a particular transaction. According to the plaintiff, this is in line with Rule 91 (2) of the Rules in the sense that it allows a commission to be paid to a staff member not exceeding 40% of the professional fee in a particular transaction. Based on the revenue-sharing agreement discussed above, the plaintiff is entitled to 7% and an equal distribution of the remaining balance. In this regard, there is no evidence before the court that it exceeds 40% in any particular transaction. [47] It is also argued by the plaintiff that even if the revenue-sharing agreement is illegal, it should nonetheless be deemed legally binding by this court. In citing Patel v. Mirza [2017] 1 All ER 191, the plaintiff argues that despite the fact that the doctrine of illegality remains rooted in the principle that enforcing such a claim would be detrimental to the integrity of the legal system and against the public interest, the court must balance the so-called trio considerations propounded by Lord Toulson in Patel v. Mirza [2017] 1 All ER 191 that include the need to take into account the underlying purpose of the prohibition, whether the claim would undermine any other relevant public policy as well as the possibility of overkill if the law is not applied proportionally. The following is what Lord Toulson had to say about this issue in Patel v. Mirza [2017] 1 All ER 191 at p 220: [101] That is a valuable insight, with which I agree. I agree also with Professor Burrows's observation that this expression leaves open what is meant by inconsistency (or disharmony) in a particular case, but I do not see this as a weakness. It is not a matter which can be determined mechanistically. So how is the court to determine the matter if not by some mechanistic process? In answer to that question I would say that one cannot judge whether allowing a claim which is in some way tainted by illegality would be contrary to the public interest, because it would be harmful to the integrity of the legal system, without (a) considering the underlying purpose of the prohibition which has been transgressed, (b) considering conversely any other relevant public policies which may be rendered ineffective or less effective by denial of the claim, and (c) keeping in mind the possibility of overkill unless the law is applied with a due sense of proportionality. We are, after all, in the area of public policy. That trio of necessary considerations can be found in the case law. [49] In determining whether or not the plaintiff's claim is illegal under Rule 91(1) and (2) of the Rules, I find that the plaintiff's claim against the first defendant cannot be limited solely to the element of 'commercial transactions' or 'commercial contracts' as suggested by the plaintiff or that in dealing with statutes regulating commercial transactions, this court shouldn't assume illegality too quickly (See Maple Amalgamated Sdn Bhd & Anor v. Bank Pertanian Malaysia Bhd [2020] CLJU 304; [2021] 6 MLJ 348). This aspect of the case is obvious to me, as there is no escaping the fact that the plaintiff's revenue-sharing claim arose out of profits from agency fees and commissions generated by the first defendant's professional services. Further support for this is provided by the fact that the plaintiff's claim is based solely on revenue generated by the Primary Market Division in which he held the position of department head. No matter what terms are used, those revenues were generated as a result of the first defendant's professional services. [50] Further to the above, despite the plaintiff's argument that he is not claiming as a real estate negotiator but rather as the Head of Department, I find that the plaintiff still falls within the scope of Rule 91(1) and (2) of the Rules. This is due to the fact that Rule 91 (1) and (2) of the Rules appear to have a broader scope. In the first instance, it explicitly refers to the participation of 'others' in profits. I cannot ignore the fact that the plaintiff falls within the definition of "others" in his capacity as Head of Department. In this sense, participation is not limited to negotiators. Secondly, the plaintiff's claim of revenue sharing also falls under the definition of profits. Aside from that, the first defendant is also prohibited from allowing or agreeing to allow anyone else, including the plaintiff, to participate either directly or indirectly in the sharing of agency fees or commissions from the professional work of the first defendant. According to my understanding, this is done to protect the integrity of the profession itself as well as to ensure that only registered agents have the authority to manage their own businesses. It is of fundamental importance to the purpose of these Rules. [51] As regards the argument that it is the first defendant's burden to demonstrate that the plaintiff's claim is above 40%, I find that Rule 91