JenejambulSdnBhdis a private limited company whose sole object is the manufacture of office furniture. Recently, the board
Question:
JenejambulSdnBhdis 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 4,000deersfrom LalalandSdnBhdat a cost of RM 2 million. They are contemplating purchasing another 2,000deersin two months' time.Jajane, a member ofJanejambulSdnBhd, is completely opposed to the idea of deer farming as it is outside the scope of the objects of the company.
AdviseJajaneon the followings:
(a) whether the contract ofJanejambulSdnBhdto purchasedeersfrom LalalandSdnBhdcan be challenged on the ground that it is outside the objects clause of the company and couldshehavethe transaction set aside; (20 marks)