Oryza Sativa Sdn. Bhd. is a company producing and processing rice in Malaysia. The only three shareholders of the company, Hasan, Bakri and Syakirah are also its directors. The company's business was blooming fast for the past 3 years. However, due to some personal issues, the three directors had a falling-out and Hasan is not on a speaking term with Bakri and Syakirah. Fearing that Hasan would make a huge problem in the future, Bakri and Syakirah have passed a resolution to allot new shares to themselves and Judika, a senior operation manager of the company. The allotment of the new shares has resulted in the dilution of Hasan's shares by 20% since the shares ranked equally with the existing shares held by the three directors.

With reference to the Companies Act 2016 or decided cases, analyse whether Hasan could challenge the validity of the allotment of the new shares.

Required using in ILAC methods

Required using Malaysia Corperate Law