Comp Any Law Assignment Sept

BBUS 2103 COMPANY LAW UNDANG-UNDANG SYARIKAT

ASSIGNMENT TUGASAN

SEPTEMBER 2009 SEMESTER SEMESTER SEPTEMBER 2009

GUIDE FOR LEARNER PANDUAN UNTUK PELAJAR

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GENERAL GUIDE PANDUAN AM

1.

Students can answer either in Bahasa Malaysia or English. Pelajar boleh menjawab sama ada dalam Bahasa Malaysia atau Inggeris. 2. Answers are to be typed on one side of answer sheets only, using Arial font size 11, and double-spaced. Setiap jawapan hendaklah ditaip di sebelah muka surat sahaja, menggunakan font Arial, bersaiz 11, dan langkau 2 baris.

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References in APA style must be included and taken from reliable sources such as books or journals. Refer to: http://www.emich.edu/halle/style_guides.html to view the details and samples of APA style. Rujukan dalam bentuk APA mesti disertakan dan dipetik daripada sumber yang sahih dan berbentuk ilmiah seperti buku atau jurnal. Sila layari http://www.emich.edu/halle/style_guides.html untuk melihat butirbutir dan contoh-contoh bentuk APA.

4.

Plagiarism, copying and cheating will NOT be awarded any mark, and disciplinary actions will be taken instead. Plagiarisme, peniruan dan penipuan TIDAK akan diberi markah dan sebaliknya akan dikenakan tindakan tata tertib.

5.

Submit your assignment in bound form if you attend face to face tutorials. If you are pursuing online learning (OL) please email the assignment to your online tutor. Serahkan tugasan anda dalam bentuk berjilid jika anda mengikuti tutorial bersemuka. Sekiranya anda mengikuti pembelajaran atas talian (OL) bagi subjek ini, sila emel tugasan kepada tutor atas talian anda.

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The cover of the assignment should include details as in Appendix 1. Kulit hadapan tugasan perlu mengandungi butir-butir seperti yang dilampirkan dalam Lampiran 1.

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7.

The assignment has to be submitted on or before Tutorial 4. Tarikh serahan tugasan adalah pada atau sebelum Tutorial 4.

8.

You are encouraged to discuss your assignment in the myLMS Forum. You can contribute ideas or respond to the ideas given by your course mates. Your online discussions in myLMS will be moderated by your tutor, and assessed for the quality and frequency of your contributions. Anda adalah digalakkan supaya berbincang berkenaan tugasan dalam Forum myLMS. Anda boleh menyumbang idea anda atau memberi maklum balas kepada idea rakan sekelas anda. Perbincangan dalam Forum myLMS akan dipantau oleh tutor anda, dan dinilai berdasarkan kualiti dan frekuensi sumbangan anda.

9.

This assignment contributes 30 percent of the total marks for the course. Tugasan ini menyumbang sebanyak 30 peratus daripada jumlah markah kursus ini.

10.

Any enquiries should be directed to your tutor either during tutorials or in the myLMS forum. Sebarang pertanyaan boleh diajukan kepada tutor semasa tutorial atau dalam forum myLMS . Important Note: This is an individual assignment. Therefore, students have to prepare the assignment individually. Nota Penting: Tugasan ini merupakan tugasan individu. Oleh itu, pelajar perlu menyediakan tugasan ini secara perseorangan.

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OPEN UNIVERSITY MALAYSIA FACULTY OF BUSINESS AND MANAGEMENT

BBUS 2103 COMPANY LAW UNDANG-UNDANG SYARIKAT

Name: Ulas Belansai Matric No.: 710825135126001 NRIC No.: 71082513516 Telephone No.: 0198479203 Email Address: [email protected]

Tutor Tutor: Pn. Raihan Bt. Yusop Pusat Pembelajaran Tempatan Local Learning Center: MIRI LEARNING CENTRE

SEMESTER SEPTEMBER 2009

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ASSIGNMENT QUESTION

PURPOSE The aim of this assignment is to enable students to give a clear picture of their understanding of company law that is the incorporation of company and matters regarding the company director. INSTRUCTION Answer ALL questions. REQUIREMENT Zimam is a successful sole trader of a poultry business where his business reaps huge profits. For sometime, he has been interested in expanding his business and decides to incorporate it into a private limited company, Golden Poultry Sdn. Bhd. (GP Sdn. Bhd.). The company purchases Zimam’s business for the sum of RM50,000 which Zimam received by means of shares and debentures. Zimam appointed Chan as the manager. Since the manager has little business experience in the poultry business, he was given training in poultry business by Zimam. In Chan’s letter of appointment there is a restrictive covenant, which states that in the event that he leaves GP for another company, he should not reveal any trade secrets or solicit their customers for another company. The business was prosper during the first year. Unfortunately, in the second year, GP business collapsed due to ‘bird flu” disease.

The poultry animals in the farms of this

company were infected with bird flu virus which has caused the farm to be closed down and the animals were culled.

Zimam sought to recoup his losses by claiming insurance

compensation. In anticipation that the company (GP Sdn. Bhd.) may be winding up soon, Chan left and formed a new company and solicits GP’s. customers.

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a) A company may be incorporated as limited or unlimited company. With reference to the Company Act 1965, discuss the meaning of limited and unlimited company and the various types of limited companies according to the Companies Act 1965. A company is a separate legal entity and its liability to pay its debts is unlimited whereby it must pay all debts due. In event that the company does not have sufficient assets to meet due debts, then the company will go into liquidation, receivership or administration. A company which is incorporated as limited company, the liability of the members is usually limited, either by shares or by guarantee. A limited company is requires to have the word “Berhad” or its abbreviation “Bhd” as part of the name under S22(3). One of the example is “MAA BERHAD”. The obligations imposed on a public company as a limited company are stated under S69L, S169(1) and S133 & S133A of CA 1965 which are consisting of requirement to maintain a register of substantial shareholders, requirement to lodge financial reports, regardless of the size of the company’s operations and loans restrictions to directors or connected persons. A company may be incorporated as unlimited company in which case the liability of its members is unlimited as per S4(1) of the Company Act 1965. S22(4) states that an unlimited company

must always include the words “Sendirian Berhad” of the

abbreviation “Sdn. Bhd” in its name. For example, “TOTAL WATER (MIRI) SDN BHD” Thus, the private asset such as house, car and etc of the shareholder could be used to settle debts unpaid by the company. The main advantage of being an unlimited company is that it does not have to file annual accounts with the Registrar as its financial are private similar to a partnership and it has the advantage of other characteristic of incorporation such as the concept of legal personality.

(8)

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b) GP Sdn Bhd wanted to appoint directors for the company. Advise the company on the appointment and qualifications of a director. Is there any possibility of removing the director from the company?

There are few criteria need to be taken into consideration for GP Sdn Bhd to appoint directors for the company. Based on the Provisions governing the duties of appointment of directors stated under CA 1965, the requirements are as follow:S122 – Every company must have at least 2 directors. S122(2) – The first directors appointed must be named in the either of the articles. The directors must be a natural person of full age. S123(1) – The person holding the position of a director must consent in writing in which non compliance of this section would result being regarded as de facto directors. Table A art 63 – The directors retire from office at the 1st Annual General Meeting. Table A art 66 – The subsequent appointment of directors will be done in the general meeting. One of the criteria for the appointment of directors is that he/she may hold a minimum number of shares in the company as per articles of company requirement called director’s share qualification which should not be nominal. It is an added incentive for the company that the directors will ensure the company is financially successful. Beside, the shareholders will appreciate that directors are willing to risk their own money as well as that of the members. However, there is a possibility of removing the director from the company. As per S128 of CA 1965, the company may remove any director before the expiration of the term of office, in a general meeting by ordinary resolution even it is contrary to the articles or separate agreement between the director and the company: Tuan Ishak bin Ismail & Ors v Leong Hup Holding & other appeal.

(5)

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c) Discuss whether Zimam or GP Sdn. Bhd. could be liable for the company’s debt under the separate legal personality principle. The legal rights and duties of shareholders, in respect of their relationship with the company are determined by the company’s constitution. The fact that the company is a separate legal entity from its shareholders makes limited liability possible. Therefore, there is no doubt that the company’s liability is always unlimited. It is the members’ liability that is limited and that liability is to the company, not to the individual creditors. GP Sdn Bhd had purchased Zimam’s business for the sum of RM50,000 which he received by means of shares and debentures. The holders of the debentures become creditors of the company for a particular sum of money, being part of the total sum owing in respect of the debenture stock. The shareholders are not liable for the debts and liabilities of the company and cannot be sued by the company’s creditors. A shareholder can be a debtor or creditor of the company and can sue or be sued by the company as in Salomon v A Salomon & Co Ltd. Therefore, GP Sdn Bhd is liable for its own debts under separate legal personality principle not Zimam.

(8)

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d) If Zimam is the only secured creditor, will he be able to recover the debt owing to him as a debentures holder if the company winds up? Zimam being a debenture holder is entitled to obtain payment of the interest sums due to him. Whether they are principal or interest, the prescribed rate of interest which is stipulated in the debenture must be paid to the debentures holder irrespective of whether or not the debtor company is in profit. Zimam as the holder of the debentures become creditor of the company for a particular sum of money, being part of the total sum owing in respect of the debenture stock. Since Zimam is the only secured creditor, the company gives special rights over its property to the creditor. He is in a better position as in a winding up that he will have priority over creditors for the repayment of its debts. As a creditor, he is then able to revoke the amount owned if the company defaults in payments.

(8)

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e) Discuss whether Zimam will be successful in his insurance claim for GP’s losses. Would your answer be different if the property was insured under Zimam’s name? Zimam is only of the shareholder and debentures for GP Sdn Bhd. The insurance is definitely insured under the company’s name that is GP Sdn Bhd. Therefore, Zimam is unable to claim GP’s losses due to the fact that he is not the insurable interest to the property. Unless the property was insured under Zimam’s name then probably he will be successful in his insurance claim. Macaura v Nothern Assurance Co Ltd (1925)

(6)

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[Total: 35 Marks]

GUIDE FOR ANSWERING ASSIGNMENT QUESTIONS i. Guide You are required to answer all questions by applying the following technique: a) identify the important issues from each question; b) answer the questions based on legal provisions and supported by decided court cases; and c) every answer must contain argument, application and summary. Please provide recent decided cases (if any) from newspapers or journals to support your answers in addition to the decided cases stated in the module. Besides, you may provide examples base on experience or events which have occurred in your workplace. For question (a) and (b), get the relevant documents from your company or company that you are familiar with and attach them with your assignment. ii. References

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a) Companies Act 1965 b) BBUS 3103 Module: Unit 1 and Unit 2 c) Relevant text books d) Articles from journals, magazines and newspapers e) Internet materials, supported with proper acknowledgement iii. Important Topics a)

Incorporation of a company

b)

Directors of company

SOALAN TUGASAN

TUJUAN Tujuan tugasan ini ialah untuk membolehkan pelajar memberikan gambaran yang jelas tentang pemahaman mereka berkenaan subjek undang-undang syarikat iaitu dari penubuhan syarikat sehinggalah perkara berkaitan pengarah syarikat. ARAHAN Jawab SEMUA soalan. Zimam adalah seorang peniaga tunggal penternakan ayam di mana perniagaannya memperoleh keuntungan yang besar. Selama ini, dia ingin mengembangkan perniagaannya dan memutuskan untuk menubuhkan sebuah syarikat sendirian berhad, Golden Poultry Sdn. Bhd. (GP). Syarikat itu membeli perniagaan Zimam dengan harga RM50,000 yang mana diterima oleh Zimam dalam bentuk saham dan debentur.

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Zimam telah melantik Chan sebagai pengurus. Memandangkan pengurus mempunyai pengalaman yang sedikit dalam perniagaan ini, Zimam telah melatihnya dalam bidang perniagaan penternakan. Dalam surat pelantikan Chan, terdapat klausa terhad, yang menyatakan bahawa sekiranya Chan meninggalkan GP Sdn. Bhd., dia tidak boleh membongkar apa-apa rahsia perdagangan atau menarik pelanggannya untuk ke syarikat lain. Perniagaan berkenaan maju dalam tahun pertama.

Malangnya, pada tahun kedua,

perniagaan GP telah musnah disebabkan penyakit selesema burung. Binatang ternakan di ladang syarikatnya di jangkiti oleh virus selesema burung hingga telah menyebabkan ladang di tutup dan ternakan dihapuskan. Zimam cuba mendapatkan balik kerugiannya dengan menuntut pampasan insurans. Chan yang telah mendapat tahu yang syarikat (GP Sdn. Bhd.) mungkin akan dibubarkan, telah meninggalkan syarikat dan menubuhkan syarikat baru dan menarik pelanggan GP.

a) Sesebuah syarikat boleh ditubuhkan sebagai syarikat berhad atau syarikat bukan berhad. Berhubung dengan Akta Syarikat 1965, bincangkan maksud syarikat berhad dan syarikat bukan berhad dan pelbagai jenis syarikat berhad menurut Akta Syarikat 1965. b) GP ingin melantik pengarah bagi syarikat. Nasihatkan syarikat berkenaan dengan pelantikan dan kelayakan pengarah. Adakah terdapat sebarang kemungkinan untuk menyingkirkan pengarah dari syarikat? c) Bincangkan sama ada Zimam atau GP akan bertanggungan di atas hutang syarikat di bawah prinsip undang-undang keperibadian berasingan.

d) Sekiranya Zimam merupakan satu-satunya pemiutang bercagar, adakah dia akan mendapat balik hutangnya sebagai seorang pemegang debentur apabila syarikat tersebut dibubarkan?

e) Bincangkan sama ada Zimam akan berjaya dalam tuntutan insuransnya bagi kerugian yang ditanggung oleh GP. Adakah jawapan anda akan berbeza sekiranya harta

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berkenaan diinsuranskan di bawah nama Zimam?

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