问答题

问答题 (a) Two years ago, Ah Chong and his brother, Ah Kong, formed a company called Dynamic Duo Sdn Bhd, carrying on the business of manufacturing sports equipment. Both were equal shareholders as well as the directors of the company, with equal powers of management. In June 2006 Ah Kong surrendered his shares and left the company following a quarrel with Ah Chong. Since then Ah Chong has been carrying on the business on his own with the help of three employees. In October 2006 Ah Chong borrowed, in the name of the company, RM1 million from Bank Boleh Bhd, in order to expand the business of the company. However, the business took a turn for the worse, and in August 2007, the company borrowed a further RM1 million from Lenmore Bank. Last month, the company was wound up as insolvent. Bank Boleh and Lenmore Bank wish to know whether Ah Chong could be held personally liable for the debts owed to them. Required: Advise Bank Boleh and Lenmore Bank. (5 marks)

问答题 (b) Jack and Jill are the directors of All-Bright Sdn Bhd, a company trading in lights and lighting equipment. In the last couple of years business has been bad and the company is hopelessly insolvent. Despite this situation, two months ago, Jack and Jill, in collaboration with Ben, the office manager, bought in the name of the company, RM1 million worth of lighting equipment on credit from Starlight Bhd, without disclosing the company’s financial position. It was clear that there was no intention on the part of Jack, Jill and Ben to pay Starlight Bhd for the lighting equipment. The company is now in insolvent liquidation and the liquidator wishes to know whether Jack, Jill and Ben can be made personally liable for the debts and other liabilities of the company. He also wishes to know whether they could be prosecuted for any offence under the Companies Act 1965 in respect of the transaction with Starlight Bhd. Required: Advise the liquidator. (5 marks)