Mimi and Siva are the only shareholders and directors in High Life Co. High Lifestyle Co contracted
Question:
Mimi and Siva are the only shareholders and directors in High Life Co. High Lifestyle Co contracted with Clothing Style Bhd and they delivered the goods worth RM100,000 but High Lifestyle failed to pay. A week later, Siva received a letter from Clothing Style demanding payment of RM100,000 to be made, else Siva will be sued for the debt. Meanwhile, Mimi has been sued by Ten Bank to pay a personal loan which she borrowed. She wants to sell off a office lot which belongs to High Lifestyle to repay her personal loan to the bank. Siva is concerned whether he can be made personally liable for the debt owing to High Lifestyle. He is also upset that Mimi wants to sell the lot which belongs to the company. Advise Siva on the above situations by applying the Companies Act 2016 and relevant cases.
South Western Federal Taxation 2016 Corporations Partnerships Estates and Trusts
ISBN: 9781305399884
39th edition
Authors: James Boyd, William Hoffman, Raabe, David Maloney, Young