(a) Two years ago, Ah Chong and his brother, Ah Kong, formed a company called Dynamic Duo Sdn Bhd, carrying on the business of manufacturing sports equipment. Both were equal shareholders as well as the directors of the company, with equal powers of management.In June 2006 Ah Kong surrendered his shares and left the company following a quarrel with Ah Chong. Since then Ah Chong has been carrying on the business on his own with the help of three employees.In October 2006 Ah Chong borrowed, in the name of the company, RM1 million from Bank Boleh Bhd, in order to expand the business of the company. However, the business took a turn for the worse, and in August 2007, the company borrowed a further RM1 million from Lenmore Bank.Last month, the company was wound up as insolvent. Bank Boleh and Lenmore Bank wish to know whether Ah Chong could be held personally liable for the debts owed to them.Required:Advise Bank Boleh and Lenmore Bank. (5 marks)
