Essay Question

The Companies Act 2016 has migrated towards the no par value regime like countries such as New Zealand and Australia. Explain the concepts and changes brought by the new regime.

Problem-based questions

Mask, Vaccina, and Sanitize are the directors and shareholders of Disaster Bhd. (hereinafter known as the company). Socid is employed as the company secretary. Mask wants to sell all his shares in the company and vacate his office as a director. Vaccina is interested to purchase the shares of Mask but lacks the funds to do so.

Required: (Answer in Issue, law-S123,125,126,112,113,224,225, application & conclusion) (a) Explain whether the company is allowed under the Companies Act 2016 to give a loan to Vaccina to enable her to purchase the shares of Mask. (b) Explain whether Vaccina can obtain a loan from a bank to purchase the shares of Mask, with the company providing security for the loan in the form of a charge over its property. (c) Explain whether the company is allowed under the Companies Act 2016 to give a loan to Socid to enable him to buy the shares of Mask.