ABBL 3044 COMPANY LAW

Written Assignment Question:

In 2018, Ross, Raj, and Mel who were collegemates decided to incorporate a company for their food truck business as they have always been passionate about food. The three of them decided that although all of them would be directors of the company, before the incorporation of the company, Raj and Mel would continue with their day jobs while only Ross, who isn't working at this point in time, would prepare all the necessary work for the incorporation of the company. They approach Molly, who is another college friend as she is pursuing her Master in Business Administration (MBA) and is well versed on Company Law. She advises them to incorporate a private exempt company under the Companies Act 2016.

(a) Discuss any 2 reasons why you think it is probable that Molly suggested that an exempt private company was the best option for them. (4 marks)

(b) Ross is concerned if he would have other duties and legal responsibilities besides arranging for the incorporation of the company at the Company Commission Malaysia (CCM). Explain to Ross his role and duties based on the facts stated above. Your answer should also include an explanation on the difference between an active and passive promoter. (10 marks) (Using ILAC method)

(c) The 3 friends ask Molly to explain what they needed to do if their business was very successful and they needed large amounts of funds to expand their business. (6 marks) (Using ILAC method)

Note that a maximum of 20 marks may be allocated for critical analysis of the question and depth of research as stated in the criteria above. The marks for highlighting the relevant legislations and principles are state at the end of sub-question. (Sub-total: 20 + 20 = 40 marks)

*ILAC is an acronym which is commonly observed in Law essays. ILAC is:

I- Issue

L- Law

A- Application

C- Conclusion