Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Basic Finance Expert

1. Jack and Jill are the directors of Semuaboleh Sdn Bhd, a trading company. Bernard is the purchasing officer of the company. The company has suffered losses over the past three years and is now insolvent. One year ago, Jack and Jill decided to order RM1 million worth of goods on credit from Easytrade Sdn Bhd. They directed Bernard to execute the transaction. When Bernard pointed out to them that the company was not in a position to repay Easytrade Sdn Bhd, he was told that they had no intention to repay as the company was soon going to go into liquidation. Bernard then ordered the goods on credit from Easytrade Sdn Bhd, and the goods were promptly delivered. Semuaboleh Sdn Bhd has now gone into liquidation and a liquidator has been appointed. Easytrade Sdn Bhd has not been paid.

(a) Explain whether Jack and Jill can be charged with the offence of fraudulent trading under the Companies Act 2016

(b) If Jack and Jill had ordered the goods on credit in the belief that the resale of those goods at a profit would save the company from insolvency, explain whether they could still be charged with a criminal offence under the Companies Act 2016

(c) Assuming that Jack and Jill are found guilty of the offence of fraudulent trading, explain whether they can be made personally liable for all, or any part, of the company's debts and liabilities.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M92592499
  • Price:- $15

Priced at Now at $15, Verified Solution

Have any Question?


Related Questions in Basic Finance

You are bearish on telecom and decide to sell short 100

You are bearish on Telecom and decide to sell short 100 shares at the current market price of $47 per share. a. How much in cash or securities must you put into your brokerage account if the broker's initial margin requi ...

Suppose that the following statistics pertaining to the

Suppose that the following statistics pertaining to the returns on the market and ABC stock: Standard deviation on returns on ABC stock is 25.00 %, the standard deviation on returns on the market is 20.00%, and their cor ...

What is the comparison and contrast between ethical

What is the comparison and contrast between ethical leadership and unethical leadership qualities in an ethnically diverse and multicultural workplace in terms of project management. What is an example of each qualities?

If you deposit 12583 dollars in an account today and the

If you deposit 125.83 dollars in an account today, and the account balance is 319.28 dollars 6 years from now, what annual interest rate did you receive on your funds? (Assume annual compounding and enter your response a ...

The winner of the first annual tom morris golf invitational

The winner of the first annual Tom Morris Golf Invitational won $110 in the competition which was held in 1900. In 2015, the winner received $1,470,000. If the winner's purse continues to increase at the same interest ra ...

What is the annual yield to maturity ytm of a 10-year bond

What is the annual yield to maturity (YTM) of a 10-year bond, $1000 par, 8% coupon paid semi-annually, currently selling for $975?

Consider three investors who need to partially liquidate

Consider three investors who need to partially liquidate investments to raise cash. In this case, all investments have been held for 3 or more years. Investor A waited for a $1,500 qualified dividend distribution from he ...

You take out an 8700 car loan that calls for 36 monthly

You take out an $8,700 car loan that calls for 36 monthly payments starting after 1 month at an APR of 9%.

What are some best practices that can be offered with

What are some best practices that can be offered with respect to scheduling and network diagramming

Taking out an 800000 30-year loan with equal monthly

Taking out an $800,000 30-year loan with equal monthly payments with annual rates is 3.6% (i) calculate the amount of interest that will be paid in the first month of the 25th year into the loan. List the steps formulas ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As