Joseph is a shareholder of AAPPP Sdn. Bhd. and holds 40% of the shares. Piles and Miles are

the directors as well as the shareholders of AAPPP Sdn. Bhd., a company that specialises in the

manufacturing and sale of herbal products. Each of them owns 30% of the company's shares.

The company has three other directors. It was recently discovered that Piles has established a

partnership with Charles. Their firm, Herbswonder & Partners also deals in the manufacturing

and sale of herbal products. Last year, AAPPP Sdn. Bhd. entered into a contract with

Herbswonder & Partners for the purchase of RM400,000 worth of herbal products. When

Joseph protested over this matter, the directors called up for a general meeting and ratified the

matter as majority shareholders.

AAPPP Sdn. Bhd. is also keen to purchase a plot of land from Miles who owns a land in

Segamat, Johor which is worth RM2.6 million. Miles has offered to sell the land for the said

price.

(i) Advise Joseph whether there has been a breach of duty by the directors of AAPPP Sdn.

Bhd. Under the Companies Act 2016 in relation to the purchase of the herbal products.

Support your answer with any relevant case law. (10 marks)

(ii) Advise AAPPP Sdn. Bhd. whether it can successfully purchase the land from Miles.

(5 marks)