Your answer must be based on Companies Act 2016 Malaysia, cases or equivalent legislation/ laws.(relate the law to situations pertaining to separate legal entity and company constitution )

During the first lockdown in March 2020, Ridzuan Jamal quit his job to sell buns from the boot of his car. One year on, he has opened a bakery and hires a number of full-time and part-time employees

Question 1

Compare the legal effects if:

a- Ridzuan opens the business as a sole trader; b- Ridzuan and his best friend start the business as a partnership; or c- Ridzuan registers the business as a company.

(10 marks)

Question 2

Suppose that the founder decided to incorporate a business (i.e. start a company):

a- Suggest TWO possible company objects for its Memorandum of Association; and b- Based on the Articles of Association, relate the steps that the company can take if it wants to purchase a factory unit*

*For this purpose you may refer to the Articles of Association template from the Companies Act 1965

1. The following is a general guide as to the answer layout:
   1. FACTS: general identification of the parties & key information in the question;
   2. LAW/ LEGAL ISSUES: elaboration of legal issues with relevant support (cases & Act) & application to the question; and
   3. CONCLUSION: summary of the arguments presented and a persuasive conclusion.