Question 8 Eda and Engin are managing directors of Art Life Bhd, a company that provide landscaping services. In January 2021, they appointed Serkan as a director to be incharge of obtaining contracts. Serkan is also a co-owner of Yildiz Garden Bhd.

In 2019, Anneh Bahce Sdn Bhd approached Serkan to re-do landscaping of their resort. Cost of contract was agreed at RM10 Million. Serkan decided to pass the contract to Yildiz Garden Bhd.

Art Life Bhd had to be wound up since it could no longer sustain. Recently the managing directors of Art Life Bhd discovered that many of potential contracts negotiated throughout February to July 2021 was not concluded.

Explain to the managing directors of Art Life Bhd on the following issues:

a) Illustrate how the courts will lift the veil of incorporation to expose Serkan’s fraud. (10 marks)

b) Choose which is the suitable type of meeting to discuss Serkan’s fraud and his subsequent dismissal as director of Art Life Bhd. (10 marks)

c) Summarise the types of capital that Eda and Engin as initial directors may raise after the incorporation of Art Life Bhd. (10 marks)

d) Distinguish between the types of charges that Art Life Bhd may create on their building and current assets. (10 marks)

e) Analyse how Art Life Bhd may be wound up given that it is unable to meet its debt to the creditors. (10 marks)