COMPANY LAW

Question 1 Jebon Industry (JI) had some shares in Maju Group (MG) and was planning to take over it by increasing its stakes in the company. To buy additional stake in MG, JI relied in the account statements which prepared by the audit firm named JZ Rodger. In the statements, the accountant had shown that MG had made profit of RM1.8 million though the fact the company had not make a profit at all. Based on the said statements, JI had decided to purchase additional shares in MG and hence made a wrong investment decision. Once JI found out was doing worse than what the account statements had claimed, JI brought an action for the financial loss against the auditor. Advise on the following:- (a) Whether JZ Rodger owe any duties to Jebon Industry? Justify your answer with provision of law and decided cases. (20 marks) (b) State any five (5) circumstances an approved company auditor is disqualified from acting as an auditor. (5 marks) [Total: 25 marks]