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QUESTION Z John and Rama are the managing directors of Teguh Mulia Son Bhd. The company's constitution provides, among others, a provision relating to payment
QUESTION Z John and Rama are the managing directors of Teguh Mulia Son Bhd. The company's constitution provides, among others, a provision relating to payment of allowance. The provision reads as follows: Article 21: Managing directors shall be paid a monthly allowance of RM5000. A few months ago, Teguh Mulia Son Bhd has ceased in making the payment of the monthly allowance. Subsequently, a meeting was called upon and Article 21 of the company's constitution was abolished pursuant to an alteration made to the company's constitution. John, who is a member of the company was upset with the company's decision and intends to enforce Article 21 of the company's constitution against the company. He told Rama, who is a not a member of the company to do the same, and they both decided to pursue with a legal proceeding against the company Advise them as to whether Article 21 of the company's constitution is enforceable against the company (20 marks)
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