Linear Corporation Bhd (Linear) had been awarded a massive RM1.67 billion contract to design and construct a district cooling plant (registration tonnes) in Manjung Perak, by Seychelles-based company Global Investment Group Inc.  The project was known as the 'King Dome'

Linear's former director, Alan Rajendram Jaya, Paid out RM36 million cash without board approval. About six months later, it was discovered that there was no evidence of any significant progress made on the execution of the contract, and no documented evidence to demonstrate the viability of the King Dome project.

In December 2009, Alan Rajendram was charged in the Sessions Court for authorizing the furnishing of a false statement to Bursa Malaysia.

Source: Adapted from SC charges ex-Linear Corp director over false statement, 2015.

Q1: Explain the corporate governance issue in this case. 

Q2: Which theory illuminates this case? 

Q3: Which code/s could be relevant to this case? 

Q4: If you were Alan, what is the best practice that you should conduct?