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1. Your brother would like to know what are the criteria for someone to be qualified for appointment as a company's director. Explain to him

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1. Your brother would like to know what are the criteria for someone to be qualified for appointment as a company's director. Explain to him the qualification based on the Companies Act 2016. 2. The new Companies Act 2016 permits a private company to have only 1 director instead of the minimum 2 in the repealed Act. Analyse the issue(s) that may possibly arise(s) if a private company is having a sole director. 3. Billy is nominated to be one of the directors in Syarikat Good Goods Bhd. Billy has no prior business management experience. He seeks your advice whether a director can seek from the company indemnity against any liability incurred by the director on any act done by him in his capacity as a director of the company. Explain the current position under the Companies Act 2016. 4. Syarikat Kayaraya Bhd is a prosperous company. The company's constitution gives the Board of Directors (BOD) wide range of powers, including the power to issue shares and to dispose of the company's undertaking. Acting pursuant to those powers, the BOD has recently, without first obtaining the general meetings' approval, agreed to: Issuing rights issue to its existing members. (b) Selling off the company's office building in Petaling Jaya for RM12 million to the wife of one of the directors; and (c) Give a loan of RM50,000 to one of the directors. Kay Poh, one of the shareholders of the company, is extremely unhappy with the above decisions which were taken by the BOD and he seeks your view as to the possible breaches of the provisions under the Companies Act 2016. Explain to Kay Poh whether the BOD has breached the Companies Act 2016. 5. JJ Bhd, a listed company, produces fresh organic fruit. There are three executive directors, Adam, Eve and Barry as well as three other independent non-executive directors in the company. Three years ago, Utopia Bhd. approached the Board of JJ Bhd and offered to sell a plot of land adjacent to JJ Bhd.'s orchard. Because of current economy uncertainties and having high gearing ratio, the BOD rejected the proposal. Subsequently, Adam and Barry, acting through AB Properties Son. Bhd. of which they are the only shareholders who also control the company, acquired the land under AB Properties Son. Bhd.'s name for the initial asking price of RM250,000." Due to recent fall in interest rates and optimistic economic forecasts, the BOD of JJ Bhd. is now considering to expand the business. Adam told the BOD that the adjacent land is offered to be sold at RM350,000. The BOD of JJ Bhd. entered into a contract with the land owner, AB Properties Sdn. Bhd. to acquire that piece of land. The Board of JJ Bhd was not aware of who are the person in control of AB Properties Sdn. Bhd. Distinguish the role of an executive director from a non-executive director. (b) Consider the liability(ies) of Adam and Barry towards JJ Bhd. if any

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