Ahmad, Becky and Xiao agree to set up a company called Megah Holding Sdn Bhd. This company deals with the construction company. Xiao entered into a contract with a supplier, Kaya Sdn Bhd, to purchase the materials and related equipment for RM200,000. Xiao signed the contract for and on behalf of the Megah Holding Sdn Bhd. Later, Ahmad Becky and Xiao become the shareholders as well as directors of Megah Holding Sdn Bhd. It was subsequently discovered that Xiao had made a profit from its incorporation, and he did not reveal it to Ahmad and Becky. Megah Holding Sdn Bhd wishes to know if the contract with Kaya Sdn Bhd binds the company since it was not yet formed. Advise Megah Holding Sdn Bhd.