1. George and his wife Victoria ran a catering and restaurant business under the name Glorious V Sdn. Bhd. They were the only two directors of the company and the held the majority of shares (having 70%) with the balance distributed among their five employees. The business was quite profitable and they were even planning on opening a second branch. Nevertheless, two weeks ago tragedy stuck. The couple was involved in a boating accident while fishing and both died. They left behind a 20-year-old daughter, Janet. Janet is upset and confused. She wants to know what will happen to Glorious V Sdn. Bhd. The employees are saying that the company must be closed because the directors have died. Janet however would like to continue with the business.

Explain to Janet the correct position of law regarding the existence of companies with reference to the Companies Act 2016. (8 Marks)

2. Jack and Jill are the directors of All-Bright Sdn Bhd, a company trading in lights and lighting equipment. In 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 companys 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 2016 in respect of the transaction with Starlight Bhd.

Advise the liquidator.

3. Describe any four factors that would disqualify a person from becoming a company director in Malaysia.