LAW OF ASSOCIATION 1 (LAW604)

SEMESTER SEPTEMBER 2016- JANUARY 2017

SPECIAL ASSIGNMENT 2 (10%)

INSTRUCTION: ANSWER ALL QUESTIONS

1. This is a special assignment.

2. Answer ALL questions.

3. Students should use Arial with the following font size:

a. Text: 11 points
b. Name of cases: 11 points, bold
c. Provisions in legislation: 11 points, bold
Other fonts are not acceptable.

4. Typing should be on one side of the paper only. The text in the paper should be typed
in one and a half (1.5) spacing. All assignment must be in justify format.

5. Please give footnotes for any reference to legal materials. Full name of the cases and
its citations must be given at all time.

6. Please provide cover sheet with the following information:

a. Name of the subject together with its code;
b. Prepared by: (name of the group members together with students number);
c. Tutorial group;
d. Prepared for: name of the lecturer in full;
e. Date of submission.

7. Please provide page number at the bottom right of the page for each page. Cover
sheet should not be counted for this purpose.

8. The assignment is due on 22 JUNE 2017 11.59 PM. Any late submission will not be
tolerated.

GOOD LUCK!
QUESTION 1

a. The Articles of Association of Train Sdn Bhd provide that the directors may borrow on
behalf of the company such sum not exceeding RM100,000 at any one time without
the consent of the company in general meeting, and that they may borrow further
sums with such consent.

At the request of the managing director of Train Sdn Bhd, Johan (another director)
gave a loan of RM120,000 to the company last month. Train Sdn Bhd now refuses to
repay the loan on the ground that no authority for the transaction was given to the
managing director by the company in general meeting.

Advise Johan.

(15 marks)

b. P&P Sdn Bhd is a property development company set up by Peter, Paul and Paula.
Peter has acted as the managing director of the company, although he was never
appointed as such. The other directors allowed him to do so. Six months ago, Peter
appointed an architect firm, Parker & Partners to carry out work for the company.
When Parker & Partners sought payment for their services upon completion of their
work, they were told that the company is not liable to pay as Peter had no authority to
bind the company.

Advise Parker & Partners as to their rights against P&P Sdn Bhd in respect of the
said contract.

(10 marks)

GOOD LUCK!