According to the Malay Mail (dated 29 May 2016), four former executive directors of Patimas Computers Berhad were charged by the Cyber Court here today on 10 counts of fraud, causing losses amounting to RM5.1 million to the company, six years ago.

The four were charged with causing four subsidiaries to make payments totaling RM5.1 million for the development of various software for Patimas Computers Berhad, when the payments were not used for the purpose.

Question

(a) One of the KEY duties of a company director is to act bona fide in the interests of the company. Explain the term bona fide.

(b) Describe various possible reasons, as to why executive directors/directors having power within an organization, tend to misuse their power for personal benefit.