Question
John and Rama are the managing directors of Teguh Mulia Sdn Bhd. The companys constitution provides, among others, a provision relating to payment of allowance.
John and Rama are the managing directors of Teguh Mulia Sdn Bhd. The companys constitution provides, among others, a provision relating to payment of allowance. The provision reads as follows:
Article 21: Managing directors shall be paid a monthly allowance of RM5000.
A few months ago, Teguh Mulia Sdn Bhd has ceased in making the payment of the monthly allowance. Subsequently, a meeting was called upon and Article 21 of the companys constitution was abolished pursuant to an alteration made to the companys constitution. John, who is a member of the company was upset with the companys decision and intends to enforce Article 21 of the companys constitution against the company. He told Rama, who is a not a member of the company to do the same, and they both decided to pursue with a legal proceeding against the company.
Advise them as to whether Article 21 of the companys constitution is enforceable against the company.
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