1. Puan Kamala Osman is the Chief Financial Controller of DS Berhad a public listed company. Her husband Encik Rahim Ibrahim as private investor has less than 5 percent share ownership in DS Berhad. The impact of COVID-19 has caused severe disruptions in the supply chain operations of the business and weakens the financial results of the company. Puan Kamala has attended the board of directors meeting on business restructuring on downsizing employees, cost cutting measures and seeking additional business funding that possible to increase further the debt ratio in response to the COVID-19 crisis. Puan Kamala beliefs that the business restructuring discussion of the board of directors will have a negative impact to the share price of DS Berhad. Based on the internal discussion of the board of directors, she had advised her husband Encik Rahim to sell the shares of DS Berhad.

REQUIRED:

1. Discuss with reason whether Puan Kamala Osman is a related party to DS Berhad.

(1 Mark)

2. Justify whether Puan Kamala is being ethical by advising her husband Encik Rahim to sell off the shares of DS Berhad.

(4 Marks)