Principles Of Company Law Essay And Assignment Help

Principles Of Company Law Assignment Help

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Company Law Assignment Sample Question And Solution

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law5201 Company Law System

Question:

Perfection Sdn. Bhd. is a private limited company that specializes in event coordinating. Incorporated on the 11th of February 2017 by Becky and her husband Keith as first shareholders, its primary business premises is located in Kuala Lumpur. Keith’s mother; Laurel undertake to invest RM10,000.00 in exchange for 10% of the shares in the company but have since managed to only remunerate half of the price of shares allotted to her. The company had employed Joey and Mike as first directors and 10 professional event planners. Joey who will be celebrating his 60 th birthday is expected to retire soon but have insisted to continue serving as director in the company. Around September of 2017; Jacky, one of the company’s event planner named undertook a wedding event project for the then newly engaged couple named Holly and Henry. The couple was convinced by Jacky’s explanation about the attaractive packages offered as provided in the brochurs that were prepared by the marketing team and the comapny’s prominence in event planning on social media. Holly and Henry requested for a western style menu to be served by the hotel management of the hall that they have rented. The wedding reception was a success, however two days after the event, Holly and Henry contacted Jacky that there were complains of food poisoning by their friends and family after consuming the food served and that 10 of their guests were admitted to the hospital for acute stomach pains. Holly and Henry claimed that Jacky as agent of the company assumed personal responsibility for the poor arrangments and for misrepresenting the company’s renown reputation during their consultation with him. They have since brought an action against him for damages. As a result of the ongoing case against the company, the business dipped. The directors have decided to alter the financial statements of the company and withhold disclosure to the shareholders and to the Companies Commission of Malaysia until the end of 2018 for tax purposes.

Uninformed, the shareholders are on the presumption that business in the company is still thriving as they have received the division of dividends for the year 2017. The board of directors have also expressed their intentions to incorporate a subsidiary company in Penang in view of diversifying the business to another state. Creditors of the company are concern that it will compromise their interest as the company may potentially be wound up.

Three months ago, Becky, Keith and Laurel were all involved in a motor vehicle accident during a business trip. All three have perished leaving behind Becky and Keith’s two year old daughter Megan. Becky’s brother; Arnold who is acting in his capacity as trustee wants to sell Perfection Sdn. Bhd. to a public company. Joey and Mike are opposing to the sale on the grounds that Perfection Sdn. Bhd. is no longer in existence upon the death of its shareholders.

Answer:

Introduction:

The Companies Act 2016 has been enacted in Malaysia which has replaced the previous act titled Companies Act 1965. The act has come into the force from 31^stJanuary 2017 along with Companies Regulations 2017. The objective of this act is to modernise corporate regulations, reduce the costs of compliances, facilitate economic growth, and remove corporate conflicts (EY, 2017). The act is targeted towards providing a comprehensive act which is easy to comply by corporations and its members in Malaysia. Under this act, the government has removed the age limit for directors. Section 129 of the Companies Act 1965 provides that a public company or its subsidiaries cannot appoint a director in the company above the age of 70 years. However, this limit is removed by the Companies Act 2016 based on which the directors can be appointed above the age limit of 70 years.Read More...

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