Company Law

ASSIGNMENT 2 (Group Assignment) (15%) Instruction: Answer ALL Questions. Please practice IRAC (Issue-Rules-Application-Conclusion). Johan owned and ran a radio repair short letter. It was quite prosperous but Johan was worried about the long-term prospects because of the far-reaching changes being do in radio technology. Johan foresaw the eventual decline of his types of business and intractable that while it was still relatively prosperous, he would transfer it to a company (specially incorporated for the purpose). 999 RM1 shares of the nominal capital of RM1,000 were issued to Johan and one to his married woman. Johan and his wife became the director of the company and employed three mechanics. Although the business was charge approximately RM50,000, the company agreed to buy it from Johan for RM80,000. In flip for the business, the company issued a debenture for RM80,000 to Johan secured by a stubborn charge on the companys fixed assets and a floating charge on all its other assets. In January 1996, a fire in the workshop caused extensive suffering to the expound (which were at all material times owned by Johan and which the company was licensed to use for the purpose of its business).

The business had to cease operation for 4 weeks resulting in a acquittance of some RM10,000, and physical damage to the premises amounted to RM15,000. Johan had consummationed against such(prenominal) risks, both to the premises and to the business. However, when the business was sold to the company, there was no assignment of the benefit of the insurance policy to the company, nor did the company effect its own insurance against such risks. The insurance company is this instant refusing to pay out in respect of the loss suffered by the company from the interruption to the business. In January 1997, the local council gave notice of its aim to exercise its compulsory purchase power to expropriate the premises but offered compensation which took account only of the fact that Johan owned the premises and refused to... If you want to get a full essay, establish it on our website: Orderessay

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