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Jack and Jill are the directors of J-J Sdn Bhd, a company which specialises in the manufacture and sale of perfumes and aromatic oils. The
Jack and Jill are the directors of J-J Sdn Bhd, a company which specialises in the manufacture and sale of perfumes and aromatic oils. The company is quite profitable and its products are in much demand. Recently, Snowyte, a member of the company, discovered the following: (a) Jack has set up a business in partnership with his brother, Tom. Their firm, J T Brothers, also deals in the manufacture and sale of perfumes and aromatic oils. Jack has been able to bring in substantial business to the firm. J-J Sdn Bhd has lost some of its business due to the competition from JT Brothers. (10 marks) s213; s214 = fiduciary duty = conflict of interest? (b) Last month, Jack and Jill bought a piece of land for J-J Sdn Bhd from Jenny, for RM 300,000. Snowyte complains that the members of the company were not notified of the purchase. She has also learnt that Jenny is Jill's sister-in-law. (10 marks) s223 = substantial value; s222 = disclosure; s197 = connected person Snowyte wishes to know whether Jack and Jill have breached any of the provisions of the Companies Act 2016 in the above-mentioned situations and the consequences if such breach has in fact occurred
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