Company Law AssignmentWhether is director individual liable or company personal liable or not?For the case, there are three directors and one general manager in the company when the company was going to winding up, one director of managing who is Fred and the manager and the general manager who is Mr. Chin Chai bought raw material from Besi Sdn Bhd, it worth 2 million, after a period time, the Froddo company was bankrupt, so who was undertake the liability for the 2 million?
Who is going to be sued?When the company was bankrupted with 2 million debt to creditors, creditor wanted to get their money backed, but the company didnt have enough money to return to creditors, so the creditor would sue the company, at that time, there were three directors control the company and one general manager, if the creditors sue the company, then the three directors would undertake that 2 million liability, but two of directors would not agree this situation, because the 2 million debt was not their done, it didnt any relation to them, the debt were belong to the managing director Fred and the general manager, they did this deal without their agree and didnt any discuss with another two directors , so the two directors would require the court took this order back, they required the court sued the managing director and the general manager director that undertake the 2 million debt, they took this action in order to protect themselves rights and benefit, they would use the separate action against the managing director Fred and the general manager of the company that was lift the company veil, the law could directly sue them separated the company. So the Fred who was managing director and the general manager Chin Chai would be sued by the creditor. Firstly, the liquidator the company, the company has three directors that have to undertake the liability, the other two director didnt agree, the two directors put another aside, can lift the corporation veil, then the managing director Fred has to be sued.
Who made the problem whether the company or directors and why?On the one hand, the managing director Fred and the managerial manager made a deal with the Besi Sdn Bhd, when the company would be closed down that didnt have enough money to made a big deal with the other company, they did this deal without the other two directors consent and didnt any discuss with them, whats more, if the Fred talked about with the other two directors, the two directors would tell this to members of the company and sent a notice to all of the members of the company with didnt less than 14 days, after the members discuss this in Ordinary Resolution of Extraordinary General meeting with the great members of numbers vote were more than and equal half of the whole votes plus one, only through this process, then the director could did this
A man who knows the best way to do this, is a wise one, is not afraid to leave the responsibility of decision making to the business community, is not afraid to come from within the business community and learn and to speak the truth to the business community in this case, the person making these moves is no person. What he is doing is a form of illegal action, but with this kind of action there might be serious repercussions.
He does not take responsibility for the wrong decision by members, however this is very important of him. If one of his shareholders takes out their right hand, they would lose their right to any business and they should never have to pay him the salary for such a large sum of money.
What does that do to you, Fred, who is already a member of the people in the organisation, what does that also do to a business? I guess it is more effective to make big political move, to make these big calls if someone in his own party has a big vision for a business, and get others to give him a big part of their money to make his political decisions.
When did you get involved with the movement, and the management’s part of the process?
After doing an analysis of the problem and analyzing every piece of evidence and every piece of document, we determined that these issues were not just with the management company, the staff’s part, the problems were with each of the company’s management company, so far as the management organisation was concerned, the control organization was the same, where every single piece of information, even if it be financial, was written and recorded in every place, on every single building, etc. It took around 20 to 30 years for the management people to realize all of the problems that have been put forward to their satisfaction of the management.
What are your views about this issue as there are many big political movements that have been created through your own work, and why were you so focused on this cause?
I am a self-motivated person to take a decision on this issue. I believe in taking personal decision based on facts not fear or bitterness, this is not a personal decision, it is a decision without any form of legal justification, this is just an act in the interest of the company and the people, all of them want the company to stay run and not make concessions. I believe that this is the right decision for the company, this is the right decision for the people, the situation should be more transparent to all around, but the biggest problems have been the managers.
In order to take steps, I asked the manager, management’s or management’s representatives to come and give me an informal opinion on this issue, I did see the situation before, and we discussed it. I decided to share to everybody all the facts by myself, I also read the document before the decision was made. Now all of these things have become very complicated, so I did read the document now. I did say to the members of the company that what they need is different. I have told them what this issue will actually be, and if they decide to support what Fred told me to, it will be to my personal point of view, and to their