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Lee, Ali, and Angel are the directors and shareholders of Babablack Bhd., a company they cofounded. Recently, lee has expressed his intention to sell all
Lee, Ali, and Angel are the directors and shareholders of Babablack Bhd., a company they cofounded. Recently, lee has expressed his intention to sell all his shares in the company. On the other hand, Angel, another director and shareholder, is interested in acquiring lee's shares. However, Angel currently lacks the necessary funds to complete the purchase. While lee wishes to divest from the company, Angel recognizes the potential value in acquiring lee's shares but is financially constrained. Harry who is an employee of Babablack Bhd. has approached Babablack Bhd., with a request for a loan amounting to RM 20,000. Harry intends to utilise this loan to purchase shares of Babablack Bhd. However, Harry has specifically requested that the shares be registered under his father's name instead of his own, and he has openly communicated this request to the company. While the company has no objections to this proposed arrangement, it wants to ensure that proceeding with this loan and registration of shares under harry's father's name would not violate any provisions stated in the Companies Act 2016. (a) Examine whether the company can grant a loan to Angel and Harry with reference to the Companies Act 2016. Support your answer with case law(s). Answer using ILAC. \{please provide reference link\} \{word limit : 2500-3500 pords\}
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