Question: Sunshine Sdn Bhd is a property development company. It has 3 directors who are Daniel, Razi and Arman. In June 2016, Daniel was required by

Sunshine Sdn Bhd is a property development company. It has 3 directors who are Daniel, Razi and Arman. In June 2016, Daniel was required by the company to negotiate a contract for the building of a highway in Timor Leste. The Timor Leste authorities were not prepared to award the contract to Sunshine Sdn Bhd. Daniel the reported to the Board that the negotiations were unsuccessful. Subsequently, Daniel terminated his contract of service with the company on the grounds of ill health. The company has now discovered that Daniel had been awarded the contract by the Timor Leste authorities, and he has made a large amount of profit from the said contract.

On another occasion, Razi was delegated the duty of negotiating a value contract with Sungguh Hebat Bhd. Razi successfully negotiated the contract and as a result the company obtained a good profit. However, the company has learned that Razi received a gift of RM1 million form the negotiation. Razi had not disclosed this matter to the company.

Sunshine Sdn Bhd seeks your advice on the legal position with regard to the above matters and what rights and remedies, if any, the company has against Daniel and Razi.

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