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(a) Hans and Leo are the directors of HL Sdn. Bhd., a trading company. They decide to order RM1 million worth of goods on credit

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(a) Hans and Leo are the directors of HL Sdn. Bhd., a trading company. They decide to order RM1 million worth of goods on credit from Pacific Food Sdn. Bhd. Wendy, the purchasing officer informs Hans and Leo that the company is not in a position to repay Pacific Food Sdn. Bhd. should they execute the transaction. Hans and Leo tell Wendy that they have no intention to repay as the company is going into liquidation soon. (i) Explain the possible criminal behaviour that could have been committed by HL Sdn. Bhd. under Companies Act 2016. (5 marks) (ii) Explain whether Hans and Leo will be personally liable for the debt if HL Sdn. Bhd. executes the transaction with Pacific Food Sdn. Bhd. and goes into liquidation after that. (3 marks) (b) Using appropriate examples, illustrate the positive corporate social responsibility (CSR) initiatives by a company that can contribute to the community, the economy and the environment. (12 marks)

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