KHS Sdn Bhd is a company in the business of plant nursery and landscaping. Azlan approached Khadijah, a director of KHS Sdn Bhd asking her about the types of plant that could be supplied by KHS Sdn Bhd to his chain of companies. Khadijah without making any reference to KHS Sdn Bhd, persuaded Azlan to purchase new plants from her since she is also having a business of plant nursery with her husband. Khadijah later resigned from KHS Sdn Bhd as a director and thereafter was awarded the contract to supply new plants to Azlan’s chain of companies and obtained a profit worth RM60,000.

Saffiyah and Husna, on the other hands decided to pay Khadijah a sum of money from the company’s fund as a gift due to Khadijah’s outstanding performance when she was a director of the company. Unfortunately, such payment was not disclosed to the shareholders. When the company expands, the company entered into an agreement for the sum of RM1.2 million with Mahathir. The agreement was for the purchase of a new land to locate the company’s new landscaping showroom. Unknown to the company, Mahathir is Husna’s husband.

With reference to the Companies Act 2016 and decide cases, advise the duties and liabilities of all the directors involved.

Answer rating: 100% (QA)

Directors of a company are the people who shareholders of a company have appointed to run the day to day affairs of the company on their behalf Once a... View the full answer