QUESTION 1 a) Evergreen Sdn. Bhd operates as a company that supplies various equipment for outdoor activities. Their bus

[answerhappygod]

Question 1 A Evergreen Sdn Bhd Operates As A Company That Supplies Various Equipment For Outdoor Activities Their Bus 1 (116.63 KiB) Viewed 23 times

QUESTION 1 a) Evergreen Sdn. Bhd operates as a company that supplies various equipment for outdoor activities. Their business is well bloomed and they decided to expand their company. Their directors, Eva and Richard decided that they will register a new subsidiary company known as Babel Sdn. Bhd. They agreed during the board meeting that Babel Sdn. Bhd will be registered in Indonesia as a foreign company since they wanted to avoid paying the taxes in Malaysia. One year later, Evergreen Sdn. Bhd has been investigated by Malaysian official authorities and acquired the details of the subsidiary company. Based on the investigation, it shows that Babel Sdn. Bhd was formed by Evergreen Sdn. Bhd simply to avoid paying taxes in Malaysia. However, Evergreen Sdn. Bhd claimed that they are not liable since they are separate legal entities and they have different management. Based on the situation above, discuss whether Babel Sdn. Bhd are one or separate legal entities by referring to the veil of incorporation. (15 marks) Issue Law Application Conclusion