Malaysia Company Law:

Ahmad, Bong and Cathy are the directors of Alpha Sdn Bhd (Alpha), a private limited company situated in Bandar Sunway. The company is involved in the leisure and hospitality business covering theme parks, gaming, hotels, seaside resorts and entertainment for over 50 years. Each of the directors holds 15% of the companys share capital. Answer the following separate and independent questions:

a. Beta Bhd (Beta) is a public limited company. The company wishes to enter into a contract with Alpha for the supply of iron and steel to be used for Alphas theme parks. The Board of Directors of Alpha had a meeting last month to decide on the matter. They decided that the company will proceed with the contract with Beta. However, recently, after entering and completing the contract, they discovered that the Managing Director of Beta is Bakar, who is a good friend of Bong.

b. Recently, Alpha contracted to buy a piece of land from Ahmad which was to be converted to a water theme park. The market value of the land is RM 600,000. Alpha bought the property at RM 550,000. Advise the Board of Directors of Alpha on the legal issues arising in the above questions.