Question
Cantik Bhd ('the company') is a company in Petaling Jaya's commercial district. It was formed in January 2012 to run a business previously carried on
Cantik Bhd ('the company') is a company in Petaling Jaya's commercial district. It was formed
in January 2012 to run a business previously carried on in partnership by Amir, Kishen and
Priveena. They sold their business to the company, in exchange for shares, and became equal
shareholders and directors of the company on incorporation. They were joined on the board of
directors by Babyface. A clause in articles states that any shareholder wishing to transfer their
shares must offer them for sale to the other shareholders. In January 2013 Amir died leaving
his shares to his wife, Lisa, who was also appointed to the board to replace him. The company
is a Media Management company who has many famous entertainers on their books.During 2012 Kishen, the managing director, proposed that the company sell its premises to
raise capital to set up a travel TV channel. Lisa thought it was too risky but Kishen and Priveena
supported the plan which went ahead.Lisa was subsequently voted off the board.
A few months ago, Lisa received indisputable evidence that Babyface was taking some clients,
who would otherwise have become clients of Cantik Bhd, for his own, small private travel
industry business. When she raised it with Kishen and Priveena, they did not want to do
anything about it as Babyface is a former, high profile, actor who still continues to bring large
amounts of clients and profits to Cantik Bhd.
The company has grown since incorporation, and is highly profitable, but Lisa is unhappy that
no dividend has been declared. All profits have been reinvested in the company, except for the
remuneration fees of the directors which is high due to the company's performance.
Advise Lisa of the potential remedies she may seek as a shareholder.
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