Question
Merah Jambu Sdn.Bhd. (MJSB) is a company incorporated in January 2018. Fiona, Shrek and Donkey are the directors and the only shareholders of MJSB. In
Merah Jambu Sdn.Bhd. (MJSB) is a company incorporated in January 2018. Fiona, Shrek and Donkey are the directors and the only shareholders of MJSB.
In June 2017, on behalf of the company, Shrek purchased a few units of office equipment from a firm named Aeron & Associates. Shrek is one of the partners in that firm. Later it was found out that the price charged for that equipment was much higher than the market price. Fiona and Donkey were not happy with it. MJSB rejected the equipment upon delivery being made and refused any liability on such contract.
Besides that, Shrek raised the idea of changing the company's name Merah Jambu Sdn Bhd to another name as MJSB planned on a new business venture. Shrek claimed that as he holds 51% shares in MJSB, a resolution to change name would be possible. Fiona and Donkey did not agree to that idea of changing MJSB's name.
Despite their disagreement, last month Fiona, Shrek and Donkey went for a camping trip with their families in Janda Baik. On the way there, they met with an accident. Fiona, Shrek, Donkey and a few other family members died in that accident.The surviving family members are now arguing about the position of the MJSB.
Advise all parties involved based on the Companies Act 2016 and relevant cases.
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