You are the consultant of Green Lime Berhad, a listed company that engages in the business of

agrotourism. Due to the recent pandemic Covid-19 in Malaysia, the business was heavily affected

and making losses for two consecutive years. The board of directors are considering for a capital

reduction scheme to mitigate the challenge of erosion in paid-up capital.

Required:

Put together note explaining to the board of directors on four (4) factors to be considered in

determining the amount of capital that is lost and how the loss should be allocated.