Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

QUESTION 3 Build House Sdn Bhd is operating a housing construction business. Two of the directors, Nizam and Nazrul hold 40% each of the shares

image text in transcribed

QUESTION 3 Build House Sdn Bhd is operating a housing construction business. Two of the directors, Nizam and Nazrul hold 40% each of the shares of the company and the remaining 20% is held by the third director, Rahman. Recently the company obtained a contract worth RM2 million for the construction of a Rumah Mampu Milik awarded by the Ministry of Housing Development. A disagreement arose between the directors following which Nizam and Nazrul set up a new company called Autaa Sdn Bhd without the khowledge of Rahman and transferred the contract to Autaa Sdn. Bhd. When Rahman protested, Nizam and Nazrul as the majority shareholders passed a resolution approving the transfer of the contract to Autaa Sdn Bhd and declaring that Build House Sdn Bhd has no interest in the contract. Both of them also passed a member's resolution to alter the company's constitution to the effect that a member was required to sell his shares if so requested by the member holding 40% of the company's shares. This was done to make sure that Rahman will no longer be a member in the company. Rahman, being dissatisfied with the above action, wishes to file a suit against them on behalf of the company. Advise Rahman

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions