Question
Build House Sdn Bhd is operating a housing construction business. Two of the directors, Nizam and Nazrul hold 40% each of the shares of the
Build House Sdn Bhd is operating a housing construction business. Two of the directors, Nizam and Nazrul hold 40% each of the shares of the company and the remaining 20% is held by the third director, Rahman. Recently the company obtained a contract worth RM2 million for the construction of a Rumah Mampu Milik awarded by the Ministry of Housing Development. A disagreement arose between the directors following which Nizam and Nazrul set up a new company called Autaa Sdn Bhd without the khowledge of Rahman and transferred the contract to Autaa Sdn. Bhd. When Rahman protested, Nizam and Nazrul as the majority shareholders passed a resolution approving the transfer of the contract to Autaa Sdn Bhd and declaring that Build House Sdn Bhd has no interest in the contract. Both of them also passed a members resolution to alter the companys constitution to the effect that a member was required to sell his shares if so requested by the member holding 40% of the companys shares. This was done to make sure that Rahman will no longer be a member in the company.
Rahman, being dissatisfied with the above action, wishes to file a suit against them on behalf of the company. Advise Rahman.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started