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QUESTION 2. David established a sole proprietorship motorcycle crop spraying business since he left school at the age of 20-year-old. David then married Dani and
QUESTION 2. David established a sole proprietorship motorcycle crop spraying business since he left school at the age of 20-year-old. David then married Dani and together they formed a private limited company known as DaniD Sdn Bhd where David held 2999 shares of the company's 3000 shares and Dani held the other 1 share. David then sold his business to DaniD Sdn Bhd. Beside being the shareholders of the company, David and Dani was also the governing directors of the company. David then applied the position of rider in the company and became the chief rider in the company. His work was to spray fertilizer from the modified motorcycle provided by the company. Every months David received salary from the company and the company also contributed to his employee provident fund and other statutory requirements and also insured the employee under the company's special workmen compensation scheme. One day, the motorcycle he was riding crashed and David died as a result. His wife, Dani, made a claim from the insurance company on behalf of her deceased husband. The insurance company refused to pay because the insurance company considered that David and the company were one of the same person. The insurance company argued that a person cannot be both a director and major shareholder of a corporation on the one hand, and also an employee of the corporation on the other. Advise Dani on whether she can successfully claim the insurance money under the principles of Malaysian company law and support your answer with the relevant provisions of our Companies Act 2016 and three (3) decided cases. [25 Marks] QUESTION 2. David established a sole proprietorship motorcycle crop spraying business since he left school at the age of 20-year-old. David then married Dani and together they formed a private limited company known as DaniD Sdn Bhd where David held 2999 shares of the company's 3000 shares and Dani held the other 1 share. David then sold his business to DaniD Sdn Bhd. Beside being the shareholders of the company, David and Dani was also the governing directors of the company. David then applied the position of rider in the company and became the chief rider in the company. His work was to spray fertilizer from the modified motorcycle provided by the company. Every months David received salary from the company and the company also contributed to his employee provident fund and other statutory requirements and also insured the employee under the company's special workmen compensation scheme. One day, the motorcycle he was riding crashed and David died as a result. His wife, Dani, made a claim from the insurance company on behalf of her deceased husband. The insurance company refused to pay because the insurance company considered that David and the company were one of the same person. The insurance company argued that a person cannot be both a director and major shareholder of a corporation on the one hand, and also an employee of the corporation on the other. Advise Dani on whether she can successfully claim the insurance money under the principles of Malaysian company law and support your answer with the relevant provisions of our Companies Act 2016 and three (3) decided cases. [25 Marks]
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