Disqualification is automatic and moon will be guilty

 Disqualification is automatic and Moon will be guilty of an offence if
he disobeys it.
 However, the disqualification may be lifted if the leave of court or
written permission of the official assignee is obtained (section 148(2))
NOTE : must state if disqualification is automatic or not
(b) Rain was also the director of Water Works Pte Ltd which was made
insolvent sometime back.
 Whether Rain can continue being the director depends on the
circumstances in which he was disqualified from being one of Water
Works Pte Ltd.
 It depends on whether the company became insolvent while he was
the director or within three years of him ceasing to be one. It also
depends on whether his conduct was such to make him unfit to be a
director.
 If so, Rain may be disqualified as a director under Section 149(1) of
the Companies Act. However, disqualification under section 149 is not
automatic → can continue as director until someone applies to court
for disqualification order
(c) Snow is also a director of Flakes Pte Ltd and has been convicted of an
offence under section 157(1) in relation to that company.
 Under Section 154(2), where Snow is convicted of any offence under
Section 157, he may be disqualified as a director for up to 5 years.

 However, if his offence involves fraud or dishonesty punishable on
conviction with imprisonment of 3 months or more, he is
automatically disqualified for 5 years.
 If Snow continues to be a director despite the Section 154
disqualification being imposed, he would be guilty of an offence
unless he has the leave of court.
(d) Assuming Moon, Rain and Snow are disqualified from acting as
directors on the grounds stated in (a), (b) and (c) respectively, can
they continue to run another business organisation which is not a
company (i.e a sole trader, partnership, LP or LLP)?
 For Moon, No. Undischarged bankrupt would not be able to run
another business organisation unless the disqualification is
lifted by an appeal
 For (b), Yes, unless LLP where Rain cannot be the partner but
can be the manager

#3 Trust, Ernest and Honest are directors of No Problems Ltd, a public
listed company. Advice No Problems Ltd and the directors in the following
circumstances:
(a) No Problems Ltd enters into a contract for the purchase of 1000 tons
of iron from another company. Trust is the majority shareholder in
that other company.
 In accordance with Section 156(1) of the Companies Act, when No
Problems Ltd enters a transaction and Trust has a direct or indirect
interest in that transaction, Trust must disclose to the board of
directors of No Problems Ltd that he has a material interest in the
contract since he is a majority shareholder in the company.