QUESTION

Nuh and Joe incorporated a company known as Motorspeed Sdn Bhd ("MSB"). They are the sole directors and shareholders of MSB. MSB deals with importing and marketing of luxury motorcycles from Japan. In order to protect his investment, Nuh has used his own name to obtain insurance coverage for the motorcycles from Premium Insurance Company. In January 2020, MSB's business was hit by a tragedy. MSB's premise was involved in a burglary and three of its motorcycles were stolen. When Nuh submitted his claim to Premium Insurance Company for the stolen motorcycles, the company rejected his application on the ground that he has no insurable interest.

Rahul is employed as the managing director of MSB in January 2020. His contract of employment contains a clause which states that in the event he resigned from MSB, he will not solicit MSB's clients for a period of two years. Rahul resigned from his employment and formed a new company, Terbang Sdn Bhd that has the same business activity as MSB. Through this new company, he secretly solicited clients and customers of MSB. Nuh and Joe were furious when they discovered some of MSB's clients cancelled their bookings of motorcycles and turned their interest to Terbang Sdn Bhd. Rahul has denied his involvement in dealing with the customers and clients of MSB.

In another situation, the Company has failed to remit its contributions to Social Security Organisation (SOCSO) for their workers. As a result, the SOCSO Board has commenced a legal action against MSB.

Advise all parties as to their liabilities under the company law.

SUGGESTED ANSWER TEMPLATE:

1. FIRST ISSUE :

Whether _________?

2. LAW

Definition

General Rule/ Law/Duty

Section(s)

Case(s)

Exception(s)/ Remedies

3. FIRST APPLICATION

The application is ___

4. CONCLUSION

In short, ________

________________________________________________________________________________________

1. SECOND ISSUE :

Whether _________?

2. LAW

Definition

General Rule/ Law/Duty

Section(s)

Case(s)

Exception(s)/ Remedies

3. SECOND APPLICATION

The application is about ___

4. CONCLUSION

In short, ________