Reference no: EM131783817

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.