4. Ash and Chloe are the directors of Odd and Even Boutiques, a company dealing in the designing of clothes for women and men. Each of them holds 35% shares in the company. The other shareholders are Mary and Heather, each of them holds 15% shares. Odd and Even Boutiques had made a huge profit last year. Mary and Heather discovered that Ash and Chloe had bought new Volkswagen cars in the name of the company but for their own use. They also sponsored RM 300, 000 for a fashion show which was organized by Chloe's sister. The company also bought a building from Alan, who is Ash's brother-in law for RM 500, 000. The true value of the land is estimated at RM 200, 000 and Ash and Chloe received RM 100, 000 as a gift.

Mary and Heather would like to consult you regarding a possible legal action against Ash and Chloe. (25 marks)

Answer Guideline for all the questions:

Identification of issues

Explanation of the law

Application of the law

Conclusion