Question
SuperOne Sdn Bhd obtained a loan of RM1 million from Best Bank Bhd in January 2019. This loan was secured by a fixed charge on
SuperOne Sdn Bhd obtained a loan of RM1 million from Best Bank Bhd in January 2019. This loan was secured by a fixed charge on the company's office premises.However, due to an oversight, the charge was not registered as required under the Companies Act 2016. In March, the company borrowed RM100,000 from Max, an unsecured creditor. The company then borrowed RM500,000 from TenTen Bank Bhd in August 2019, and gave to the bank, as security for the loan, a debenture securedby a floating charge over its inventory, and this charge was immediately registered.SuperOne Sdn Bhd subsequently suffered financial problems. In September 2019, a creditor presented a petition for the winding up of the company. The winding up order was granted by the court in January 2020.
Advise the liquidator of the company:
i)On the priority rights of the creditors.(15 marks)
ii)Whether the validity of any of the charges can be challenged.
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