2 [10 marks | 15 MINUTES] Dylan Mandoza is the Chief Executive Officer, founder, and majority owner of NamMedi Limited., an emerging medical technology products company. NamMedi is in dire need of additional capital to keep operating and to bring several promising COVID-19 products to final development, testing, and production. Dylan, as owner of 51% of the issued and outstanding shares, manages the company's operations. He places heavy emphasis on research and development and on long-term growth. The other principal shareholder is Maria Somaza who, as a non-employee investor, owns 40% of the shares. Maria would like to deemphasize the R&D functions and emphasize the marketing function, to maximize short-run sales and profits from existing products. She believes this strategy would raise the market share price of NamMedi's shares. All of Dylan's personal capital and borrowing power is tied up in his 51% share ownership. He knows that any offering of additional shares will reduce his controlling interest and power because he will not be able to participate in such an issuance. However, Maria has money and would likely buy enough shares to gain controlling power of NamMedi. She then would dictate the company's future direction, even if it meant replacing Dylan as the NamMedi's CEO. The company already has considerable debt and its memorandum of incorporations accords the management the power to direct its operational policy. Raising additional debt will be costly, will adversely affect NamMedi's credit rating, and will increase the company's reported losses due to the growth in interest expense. Maria and the other shareholders express opposition to the assumption of additional debt, fearing the company will be pushed to the business rescue process and perhaps bankruptcy. Wanting to maintain his control and to preserve the direction of "his" company, Dylan is doing everything to avoid a fresh share issuance to raise additional capital for the company. He is contemplating a large issuance of bonds, even if it means the bonds are issued with a high effective-interest rate. You are required to: a. identify the stakeholders in this situation. [3 marks] b. state the ethical issue(s) in this case. [3 marks] c. provide Dylan with recommendations regarding available actions he should take. [4 marks]