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(a) Botty John, who is not resident in Malaysia, is the sales and marketing representative for John Publications Limited, a United Kingdom resident company.

 

(a) Botty John, who is not resident in Malaysia, is the sales and marketing representative for John Publications Limited, a United Kingdom resident company. John Publications Limited is owned and controlled by Botty, John and his brother, Patty John, who has not so far been actively involved with the company. John Publications Limited does not have a permanent establishment in Malaysia. Patty John is about to retire from his present employment in the United Kingdom and intends to relocate from the United Kingdom to live in Malaysia in his retirement. Boty John sees this as an opportunity to get some help in his sales and marketing activities in Malaysia. Thus, he appoints Patty John as a director and grant him with the authority to conclude contracts on behalf of John Publications Limited, in Malaysia. Required: Explain if an action to appoint Patty John as a director may result in Bright Publications Limited being deemed to have a permanent establishment in Malaysia.

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