Atan, Bella and Chan are the directors of ABC Bhd, a company which supplies stationery to schools and universities. Atan is the managing director of…

1. Atan, Bella and Chan are the directors of ABC Bhd, a company which supplies stationery to schools and universities. Atan is the managing director of the company. Last week the court ordered ABC Bhd to be wound up on the ground that it was unable to pay its debts. Among the creditors of ABC Bhd is JKL Bhd, which had supplied a large quantity of stationery to ABC Bhd. A week before Atan, Bella and Chan ordered the stationery from JKL Bhd, they were informed by ABC Bhd’s accountant that ABC Bhd was hopelessly insolvent and that it would be unable to pay its debts.

(a) Assume that Atan, Bella and Chan had ordered the stationery in the hope that it could be used to help the company to return to solvency.

(i) Advise whether Atan, Bella and Chan have committed any criminal offence under the Companies Act 2016.

(ii) Advise whether Atan, Bella and Chan can be made personally liable for the debt due to JKL Bhd.

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