Rules of Amendment - Substantial Value Transaction - Management Assessment Answer

Management Assessment Task

Question 1                                                                                                                   
The Company’s constitution states the purpose of the company is to manufacture ice creams. Lee is the company’s director. He has ordered an industrial oven for RM20000 which makes ice cream cones. Question, is this purchase of the oven within the company’s object clause? Justify your answer.                                                                                               

Question 2                                                                                                                
It is said that a constitution is a contract between the company and the members as if the members have signed it. Explain.

Question 3                                                                                                                 
State the rules of amendment of a constitution with brief explanations.

Question 4                                                                                                                  
Explain the importance of the information regarding the registered address of the company that can be found in the constitution.

Question 5                                                                                                                   
Explain and clarify the rules regarding the nationality and residential requirements of a director under the CA 2016.

Question 6                                                                                                                   
In your opinion, using 2 examples of fiduciary duties to a director’s duties, explain the importance of such duties to a director in Malaysia

Question 7                                                                                                                 
Describe the scope of a director’s statutory duties of due care, skill and diligence under the CA 2016

Question 8                                                                                                                  
Define substantial value transaction

Question 9                                                                                                                  
According to the CA 2016, explain the prohibition affecting a director about providing financial help in buying company’s shares.

Question 10                                                                                                              
Explain the legal rule about making the purchases of a substantial “value transaction” valid under the CA 2016.

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