A Delima case is about when A Delima Sdn Bhd was first time engaged the external Auditor Aziz & Co for the purpose of to raise banking facilities totalling RM1 million with Malayan Banking Berhad and CIMB Bank Berhad due to the shortage funds for a contract worth RM750,000. Due to the audit findings there is a lot of weakness and fraud in management of A Delima.
First of all, En Zayed and his spouse Pn Hashimah was the only shareholders and also controlling director and this company was only run by their family members which is not knowledgeable for their position such as for the Operation Manager and Human Resources and Administration Manager was both their family members which is does not have intellectual needed to play their position. Until at the end, Encik Zayed was appointed Cik Amy as finance executive.
COMPANY ACT 1965
It was mention in paragraph one that both Encik Zayed and Puan Hashimah does not familiar with provision of company act 1965 and the duties their roles and duties as Company Directors. According to section 122 (1) every company shall have at least two directors, who each has his principal or only place of residence within Malaysia. So they follow the provision of section 122(1) which is mention about at least 2 directors and both of them are the directors of the company.
For their duties, according to the law they are two types of duties of director, duties of care, skill and diligence and fiduciary duties. In this case does not show both Encik Zayed and Puan Hashimah take an effort to know his right and obligations in the company it’s been prove by statement they are not very familiar with the company act. Encik Zayed shows his duty care by delegate his power and trust to cik Amy a new finance executive to perform a work related to company financial. Other duties that on duties of care, skill and diligence are duty of