Question
Laici is a director of Buek Sdn. Bhd, a company that manufactures beverages from local fruits. Laici purchased two units of machinery for the company.
Laici is a director of Buek Sdn. Bhd, a company that manufactures beverages from local fruits. Laici purchased two units of machinery for the company. Not long after the purchase, it was discovered that the price of the machinery was grossly in excess of the normal price. As a result, the company suffered financial loss. The company then discovered that Laici had bought the machinery from a firm where he was one of the partners. Buek Sdn. Bhd. sent another director Soya, to Amsterdam to discuss the possibility of securing a contract with Jus Co. Ltd. Soya came back and reported that the negotiation failed. Buek Sdn. Bhd has now found that Jus Co. Ltd had awarded the contract to another company in Malaysia where Soya is one of the directors. Advise Buek Sdn. Bhd on whether it can sue the two directors due to breach of director duties. (40 marks)
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