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(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

(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 company's 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 thequalifications

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 theCompanies 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 company's operations as most of them are well pastretirement age and have no plans to

continue working..Furthermore,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]

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