Mickey, Mimi and Pluto are close friends. They wish to form a company to manage a small factory. They searched for information on how to set up a company in Malaysia. At the same time, Pluto ordered machineries from Power Steel Berhad. (PSB). The sale and purchase agreement was signed by Pluto a few days before their company was officially incorporated as Multitasking Semi-Conductors Sdn. Bhd. (MSSB). After MSSB was incorporated, a resolution was passed by Mickey, Mimi and Pluto who became the directors and shareholders of MSSB. However, the machineries were still not delivered by PSB. When Mickey called up PSBs office, he was told by PSBs Managing Director, that PSB refused to proceed with their agreement. He further claimed that PSB will not be bound to honour the agreement as it was signed when MSSB was not yet in existence.

A few weeks after MSSB was incorporated, Donald joined MSSB as a shareholder. He forwarded a complaint to Mimi that MSSB was not having enough capital and MSSB must increase it by receiving deposits from the public.

In the meantime, Mickey purchased a piece of land for MSSB under his name as a purchaser. Now Mickey is asking MSSB to pay for the purchase price.

Advise all the parties involved based on the Companies Act 2016 and any relevant case.