Serena is a non-executive director of two companies, Lotsamunny Bhd, a large public company and Minibiz Sdn Bhd, a small private company which has only five shareholders.Serena urgently requires a loan of RM150,000, partly for meeting medical expenses of her mother, who requires an urgent operation, and partly to finance the purchase of a car for her husband.Serena is contemplating obtaining a loan from either of the two companies.Required:Advise Serena as to the legality of such a loan under the Companies Act, 1965 and whether your answer would differ if Minibiz Sdn Bhd is an exempt private company. (10 marks)
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