Ginny has an established company of RM2 issued share capital in which she and her husband each own one share of RM1. She asks your friend to lend money to her company. Advise your friend whether to purchase shares in the company. (30 marks)

Discuss the concept of limited liability as to the core of the answer. The question requires a discussion on the risk of

(i) lending the money to the company,

(ii) becoming a shareholder of the company.

In Paragraph and total words shall be in the region of 450 words.