THE QUESTION MUST BE ANSWERED ACCORDING TO Malaysian Companies Act 2016 (Marks will be awarded...
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Accounting
THE QUESTION MUST BE ANSWERED ACCORDING TO Malaysian Companies Act 2016
(Marks will be awarded for APPLICATION not the regurgitation of information)
"Please answer in detail"
Anna and Elsa are the directors of Frozen SdnBhd, an ice cubes distributor. Anna owns 51% of the shares while Elsa owns 49%. Two months ago, they had a quarrel related to Anna's exorbitant purchase of sponsorship slots in the Harbin Ice Festival. Since then, Elsa refused to support any special resolution for Frozen Sdn Bhd. Anna, in order to dilute Elsa's voting power and prevent her from blocking special resolutions intend to take the following courses of action: (i) issue new shares to Kristoff, her husband; and (ii) approve an interest-free loan from Frozen SdnBhd to Kristoff, to enable him to purchase the newly issued shares. Indicate to Elsa whether she may challenge items (i) and (ii) above. (700 Words)
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