Sulin, Rita, and Lili are the shareholders of Sunny Sdn. Bhd. The authorized capital of the company is RM1 million. Sulin has agreed to contribute RM500,000, and the remaining balance is to be equally divided between Rita and Lili. Sulin and Lili have only paid 60% of their shares, while Rita has paid up all her shares. They have decided to buy a shophouse in Alamesra, which was originally belonged to Rita. Unfortunately, upon completing the sale and purchase of the shophouse, the shophouse was destroyed in a fire. Sulin, Rita, and Lili have only realized that the unit's insurance was still in Rita’s name. Meanwhile, the company is now unable to pay its creditors, and they are now demanding payment from Sulin, Rita, and Lili. Discuss the legal implication(s) in the above situation based on the Companies Act 2016 and decided cases.

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In property insurence claim is decided against insurable interest in a property and in above case le... View the full answer