company law

Answer one of the questions below and support your argument based on Companies Law Act 2016 and cases law. QUESTION A Badrul just graduated from Universiti Selangor with a Bachelor in Business Management and wanted to start a business. He is aware that there are several types of business organizations in Malaysia. He decided to form his own cornpany since he was told that the procedure under the new Companies Act 2016 is simpler and technology friendly. Badrul managed to access the MyCoid system and lled up all the required details in the superfonn until a notice of registration was issued to him under Section 15 of the Companies Act 2016. However, he is not aware on the effects of incorporation as he did not take Company Law & Secretarial Practices subject before. Based on your understanding, advise Badrul on the process and effects of incorporation in reference to the Companies Act 2016 and decided cases. QUESTION B DIRECTORS FACE HEAVIER PENALTIES UNDER NEW COMPANIES ACT KUALA LUMPUR: A company director who breaches the newly-implemented Companies Act 2016 will face a heavier fine of up to RM3mil and a maximum five-year term of imprisonment, or both, if found guilty. The Companies Act 2015, which replaced the previous Companies Act 1965, came into effect in stages from Jan 31, 2017. InCorp director, Kong Ming Enn, said a director who improperly used the companfs property, opportunities, information acquired by virtue of position, or engaged in business which was in competition with the company, would face the penalties mentioned above. \"The maximum of RM3mil fine is 100-fold increase from the RM30,000 under the previous law," he told a media workshop on the Companies Act 2016 in Kuala Lumpur on Tuesday. InCorp is a company secretarial services provider owned by Elegant Management Sdn Bhd. Retrieved from The Star Onir'ne: Published on Wednesday 1" February 201 ? Based on the above, analyse the newspaper report and explain in detail on the duties of dire in reference to the Companies Act 2016 and case law