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Senang Sdn Bhd, a textile company has 4 directors, namely Aby, Badi, Cin Nih and Dyianty. The articles of association of the company requires all
Senang Sdn Bhd, a textile company has 4 directors, namely Aby, Badi, Cin Nih and Dyianty. The articles of association of the company requires all directors to acquire and hold a minimum of 10,000 shares in the company. Last week Aby sold off all his shares in the company. Two days ago, acting on behalf of Senang Sdn Bhd as the company's director, he entered a contract with Per Chah Yah Enterprise. The contract was for the purchase of textile from Per Chah Yah worth RM100,000 for Senang Sdn Bhd. Cin Nih and Dyianty are not happy with the contract. They claim that Arun is no longer the company's director and that the contract made with Per Chah Yah Enterprise is not binding on the company. Meanwhile, the Accountants of Senang Sdn Bhd recently discovered that there was a contract awarded to Malam Sdn Bhd, for RM500,000 for the supply of curtain textile to Senang Sdn Bhd. Badi is the owner of Malam Sdn Bhd. This information was not disclosed to the Board of Directors. With reference to the relevant provisions of the Companies Act 2016 and decided cases, analyse the legal rights of Senang Sdn Bhd on the following: 1. The RM 100,000 contract made by Aby, on behalf of Senang Sdn Bhd with Per Chah Yah Enterprise. 2. The awarded RM500,000 contract to Malam Sdn Bhd, for the supply of curtain textile to Senang Sdn Bhd. 3. Badi who failed to make a disclosure that he is the owner of Malam Sdn Bhd that received the RM500,000 contract for the supply of curtain textile to Senang Sdn Bhd
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