Question
A, B, C and D are the directors of AK Bhd (the company). They were appointed as directors two years ago. C is the managing
A, B, C and D are the directors of AK Bhd (the company). They were appointed as directors two years ago. C is the managing director of the company. Two weeks ago, C, who is now 71 years old, entered into a contract on behalf of the company to purchase office stationery from the company supplier, Omos Sdn Bhd, at a price of RM100,000. Last week, following an argument among the directors at a board meeting, B, C and D decided to remove A as a director. A notice signed by B, C and D was sent to A stating that A had been removed as a director with immediate effect. Advise C and A, who wishes to know the following: (a) Persons disqualified from being a director. (b) Whether the contract for the purchase of office stationery can be invalidated on the claim that C was "disqualified to act as a director" of the company.(c) Whether the removal of A as a director is valid.
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