Question
(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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