Gary and Ben wanted to sell all their shares to Jojo and Cool respectively. What is the effect of these transactions to the status of the company Sporty Sdn. Bhd.? Please justify your answer with a case law.
The status of the company will remain the same. Gary and Ben only sell all their shares to Jojo and Cool, in other words only the share holder change hand. Similar case law is has below:
ABDUL AZIZ BIN ATAN & 87 ORS V LADANG RENGO MALAY ESTATE SDN BHD (1985) 2 MLJ 165.
Facts
All the shareholders of the company sold and transferred their entire share holdings to a certain buyer
Issue
The court had to determine whether a change of employer took place
Held
An incorporated company is a legal person separate and distinct from its shareholders. The company, from the date of incorporation, has perpetual succession and did not change its identity or personality even though the entire share holding of the company changed hands.
REFERENCE
