(a) Anis and Munir have been appointed as directors MakanSuap Sdn.Bhd. a company which was incorporated only two weeks ago. They intend to appoint their friend, Kesh, as the companys auditor. Kesh, who has just graduated with a degree in business administration, is unsure whether to accept the offer.

Advise Kesh:

(i) Whether, there are any specific requirements under the Companies Act 2016 as to the qualifications of a company auditor and whether he qualifies to be appointed as one. [4 marks]

(ii) Whether, the directors can remove an auditor at any time at their option or whether there is any procedure under the Companies Act 2016 which may afford an auditor some protection from such removal. [6 marks]

(b) The shareholders and directors of Prima Sdn.Bhd a company trading in furniture, have decide to cease the companys operations as most of them are well past retirement age and have no plans to continue working. Further more, due to the economic slowdown, the business has not been doing well.

(i)You requested to advise the directors of Prima Sdn.Bhd on the procedures required to dissolve the company. [6 marks]

(ii) Assuming that in the course of dissolving the company, it was discovered that the company is actually insolvent. What should the directors do, if they still wished to dissolve the company? [4 marks]