Mickey and Goofy are directors and equal shareholders of MG Rugs Sdn Bhd, incorporated in the year 2000. Throughout these years they built and grew their carpet business together. When Goofy’s son graduated from university last year, both Mickey and Goofy appointed him as director, and additional shares were issued in his favor. Soon after, Goofy and his son signed a resolution to remove Mickey as a director. After Mickey left, Goofy and his son canceled many contracts with regular customers and sold most of MG Rugs Sdn Bhd’s assets, using the cash obtained to start a restaurant business. Mickey plans to take action to liquidate MG Rugs Sdn Bhd, citing sections 346 and 465 of the Companies Act 2016 as advised by his lawyer. 

Taking into account the facts above, express to Mickey whether he may succeed in his claim.

Answer rating: 100% (QA)

Under Section 346 of Corporations Act 2016any member of a company may apply to the court on the grou... View the full answer