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Jenejambul Sdn Bhd is a private limited company whose sole object is the manufacture of office furniture. Recently, the board of directors decided to expand

Jenejambul Sdn Bhd is a private limited company whose sole object is the manufacture of office furniture. Recently, the board of directors decided to expand its business to venture into deer farming. Pursuant to this decision the company purchased and obtained delivery of 4,000 deers from Lalaland Sdn Bhd at a cost of RM 2 million. They are contemplating purchasing another 2,000 deers in two months time. Jajane, a member of Janejambul Sdn Bhd, is completely opposed to the idea of deer farming as it is outside the scope of the objects of the company.

Advise Jajane on the followings:

(a) whether the contract of Janejambul Sdn Bhd to purchase deers from Lalaland Sdn Bhd can be challenged on the ground that it is outside the objects clause of the company and could she have the transaction set aside; (20 marks)

(b) whether she could successfully obtain an injunction against any party to prevent the contemplated purchase of another 2,000 deers in two months time; and 10 marks)

(c) whether she could take legal action against any person to make that person compensate the company for any loss resulting from the purchase of the deers. (10 marks)

(d) Whether the company could amend the company constitution to enable the company to enter into such contract and if so what would be the correct procedures for such amendment. (10 marks

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