Pink Berry Bhd. (“Pink Berry”) is a retail company selling designer clothes. On 30 December 2020, the board had approved the following proposals:

a) To enter into a contract of insurance with Safe Haven Assurance Bhd. for business interruption policy. The contract has been signed on behalf of Pink Berry by Aldo, Pink Berry’s Finance Director. However, the Covid-19 pandemic has halted Pink Berry’s business for almost 12 months and unfortunately Pink Berry was unable to make claims from Safe Haven under the policy since some material disclosures were not made. It turns out that Aldo has made some errors in the application form and he did not read the insurance policy and its coverage at the time the insurance contract was signed.

b) To grant a loan to Chantique Bhd. amounting to RM500,000. Timmy, an executive director of Pink Berry, holds 50% of voting shares in Chantique Bhd.
Advise Pink Berry on any potential breach of director’s duties or violation of any provisions of the Companies Act 2016. Support your answer with the Companies Act 2016 and decided cases, if any.