Highlights
Question
Syarikat Dim Sum Sdn. Bhd. is a joint venture company between Dim Sdn. Bhd. and Sum Sdn. Bhd. with each owning 50% shares in Syarikat Dim Sum Sdn. Bhd. The Constitution of Syarikat Dim Sum Sdn. Bhd. provided that each of the shareholders is entitled to nominate one director to the Board of Directors. Maggie Sum is nominated by Sum Sdn. Bhd. as one of the directors in Syarikat Dim Sum Sdn. Bhd. Maggie Sum is the only daughter of the largest shareholder of Sum Sdn. Bhd., Sum Shui Pou. Maggie Sum does not have any prior business management experience.
a) Advise Maggie Sum whether a director may seek indemnification from the company against any liabilities incurred by a director on any acts done by the director in his/her capacity as a director of the company.
b) Give your opinion on the law governing the director's indemnification under the Companies Act 2016 as discussed in sub-question (a) above.
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