Companies Act 2016

Part 1: I-Investment Sdn. Bhd. is a company incorporated under the Companies Act 2016 with Mr. Fong as the sole director and the only shareholder of the company. On September 2021 there was a catastrophic collapse in the property market and in consequence I- Investment Sdn. Bhd. began to experience severe financial difficulties. I-Investment Sdn. Bhd. then entered into an agreement with Nato Sdn. Bhd. a company owned and controlled by Mrs. Fong. Under the terms of this loan agreement, Nato Sdn. Bhd. agreed to lend I-Investment Sdn Bhd a sum of RM 5,000,000.00 with an interest rate of 12 % which is higher than the commercial bank's rate. On December 2021, Mr. Fong transferred 2 out of 5 units of office lots own by I-Investment Sdn. Bhd located in Petronas Twin Tower, Kuala Lumpur into his own name. In the same month, Mr. Fong sold I-Investment Sdn. Bhd. to Rename Sdn. Bhd for the sum of RM 6,000,000.00 where he made a profit of RM 100,000.00 as commission. On September 2022, I-investment Sdn. Bhd. defaulted the repayment and a winding up proceeding was initiated by Nato Sdn. Bhd. Advise Mr. Fong whether he has committed any offences during his term as a director of I-Investment Sdn. Bhd [30 marks] Part 2: Exclude all the transactions from the case study above, would your answer differ if Mr. Fong is an honest director had entered into transaction during his tenure as a director, however, he still cannot manage to improve the company financial status, whether he would still be made liable for his company's losses if a bona fide and informed business judgment that he had made in the interests of the company had gone wrong. [10 marks] Each answer shall consist: - An introduction. - Discussion the issues in the case study supported by statutory provisions under Companies Act 2016, case law (if any) and with reasoning. - Conclusion