b Yes as disqualification is not automatic However Section 1491 of the

B yes as disqualification is not automatic however

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(b) Yes as disqualification is not automatic. However, Section 149(1) of the Companies Act allows the minister or official receiver to make an application to court asking for a disqualification order in certain circumstances. Hence it is not automatic and must be triggered by someone. It states that Section 149(1) can be used against him if Rain was a director of a company which became insolvent while he was a director, or within three years of him ceasing to be one, and the director’s conduct was such as to make him unfit to be a director. Matters that have to be considered in determining whether the director’s conduct makes him unfit to be a director are set out in Section 149(6). Yes. However he can be disqualified but it is not automatic. Within the period of 3 years, the previous company became insolvent as because of his breach of fiduciary duty. State the length of time and also show that he can apply for the leave of court to lift the disqualification.
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(c) No. As seen in Ong Chow Hong v Public prosecutor (2011), since he committed an offence under section 157(1) it means that he acted dishonestly and did not act with due diligence and in the best interest of his previous company. Section 154(1) provides that if a person has committed any offence in Singapore in connection with the formation or management of the company, or any offence under section 157 or 339, he may be disqualified. Section 157(1) states that a director must act honestly and use reasonable diligence and can be fined and disqualified. Cannot apply to lift the disqualification. 154(1) not required as it only deals with fraudulent behaviour and there has punishable, serious crime and go to jail for more than 3 months. 154 (2) does not have to be mentioned as it relies on 157(1). (d) Yes, they are allowed to do so as it is not stated that they are not able to run other businesses. But they cannot be a director in an LLP. For (a) bankruptcy, cannot do any of the above. If a man cannot manage his own affairs he cannot manage the affairs of a business or a company.
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  • Spring '18
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