Malaysia company law

Question 2 Rock Sdn. Bhd. ("The company") was incorporated on the 16" of July 2018. Betty and Donna are the shareholders of the company. In the facilitation of the management of the entity, Aza and Sandy was appointed as the company's chief executive officer. A year ago, Aza has proposed to the shareholders for a proposed takeover of ABC San. Bhd.; a financially struggling company. Aza is of the opinion that the takeover would expand Rock Sdn. Bhd.'s business portfolio within its market share. LAW5201 (F) / Page 2 of 3 A report from Mandy the auditor revealed that the company's finances are stable and sufficient to proceed with the takeover. The proposal was approved during the general meeting. Three months after the takeover, the company realizes that it was a failure as the cost of restructuring the internal management in ABC Sdn. Bhd. was equivalent to a year of the company's profit. In a separate occasion, Sandy negotiated for a contract on behalf of Rock Sdn. Bhd. with Rainbow Bhd.; a listed company in Bursa Malaysia. The negotiation was successful however upon her return to the company, Sandy informs the board that Rainbow Sdn. Bhd. showed no interest to collaborate with the company. A few months later Sandy resigned from her position as director and have established a company on her own. In addition she undertook the contract by Rainbow Sdn. Bhd. for her newly incorporated company. Betty and Donna seeks your advise in relation the following: (a) The liabilities of Sandy. (10 marks) (b) The liabilities of Aza. (15 marks)