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Question 2 (a) Micky and Ricky wish to start a business making and selling Korean food. They are undecided as to the type of company they should form. Advise them on the difference between a private company and a public company. (10 marks) (b) JYJ Sdn. Bhd. wishes to diversify its business into the manufacturing of music cassettes which is presently not covered by its object clause. Discuss how an alteration of the object clause can be effected and whether the minority shareholders may object. (10 marks) [Total: 20 marks] Question 3 (a) * The board of directors of OR Bhd. wishes to issue shares at a discount. Discuss if this can be done and, if so, the requirements necessary in order to do so. (10 marks) (b) Siew Cheng wishes to buy some shares as an investment. She is a person who does not like taking risks and dislikes the idea of attending company meetings. Advise her on the type of shares she should purchase. (10 marks) [Total: 20 marks] Question 4 (a) Discuss the requirements for the reduction of share capital. (6 marks) (b) The articles of E Bhd. state that Anthony is to be appointed as a manager of the company. Anthony who is not a member of the company was not appointed as manager. Can he sue E Bhd.? Would the situation be different if he is a member of the company? Discuss. (14 marks) [Total: 20 marks] Question 5 (a) Mathew has bought 5% of the voting shares in Z Bhd. Discuss the requirement of any disclosure that is to be made because of this purchase and the consequences of not doing so. (10 marks) (b) The board of directors of Lotus Bhd. decided to obtain a loan by charging some of the company's assets. Discuss the differences between a fixed charge and a floating charge. (10 marks)

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