QUESTION 1

Farhad was appointed as a director of Senang Lenang Sdn. Bhd. He is responsible to many IT projects around the country. After few years of experience Farhad established his own It company by the name of F&D Resources Sdn. Bhd. He uses Senang Lenang Sdn Bhd's customer's list to obtain project for his own company. At one time when he secured many projects he uses Senang Lenang Sdn Bhd's money to fund his project without the consent of other directors. In one of the company's meeting Farhad agreed to the appointment of his second wife, Diana as the auditor of Senang Lenang Sdn. Bhd. The directors of Senang Lenang Sdn Bhd found out about this fact and now seeking your advice as to the legal action could be taken against Farhad and Diana.

[ANSWER SHOULD USE THE IRAC METHOD AND MUST BE BASED ON THE MALAYSIA COMPANY ACT]