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QUESTION 1 As the directors of BecAut Sda. Bld. (BecAut*) who also held 60% of its shares, Rajib and Nosmar always ignored the views of
QUESTION 1 As the directors of BecAut Sda. Bld. ("BecAut"*) who also held 60% of its shares, Rajib and Nosmar always ignored the views of the minority shareholders on the issues relating to the management and affairs of the company. They always rode roughshod over the others and treated the company as their own business. They always flew with business class at the company's expenses despite that there had been a resolution prohibiting anyone to fly other than with economy class at the expense of the company. Although the company contined to make handsome profit, there had been no distribution of dividends for the past four years. Conversely, the directors' remuneration had since been substantially increased. Rajib and Nosmar jointly owned a piece of rural land which was assessed to be worth of RM300,000.00. They acted in their capacity of directors of BeeAnt, purchased that piece of land at the price of RM1.S million. The purchase price was paid using BeeAnt's money. Despite numerous requests from one of the minority sharcholders, Kect Xiang, to inspect the financial records of the company, the requests fell on deaf ear. Some of the minority shareholders namely Keet Xiang, Anar and Made were frustrated with the scenarios. It is to be noted that Made was recently being transmitted with 200 shares of the company after his father's demise. His name was, however, yet to be entered into the register of members. Identify the legal issues and advise the three of them on what they can do about the whole scenario.
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