A company secretary is given resposnibility to sell a company's boarded motor vehicles. He sells them to his sister at sh 500,000 then forms another company and instructs the sister to sell the vehicles to the company at sh1,000,000. The secretary issues a prospectus to the public to subscribe for shares. The prospectus gives the sister as the vendor of the Lorries and doesn't disclose the secret profit the secretary is making. One of the shareholders of the company gets to know about it and asks for advice. What should I advice