QUESTION 2 Anand, Bakri, and Chan are the directors of Happy Bhd, a company dealing in the import and sale of foreign carpets. They are also its majority shareholders, each holding 20% of its issued shares. In January 2019, there was speculation that the three of them planned to reduce the share capital of Happy Bhd in a board meeting. They felt that Happy Bhd had already enough capital for its investments. a David was a preference shareholder. They planned to reduce David's preference shareholding from 5% to 2%. Anand Bakri and Chan also plan to support Anand's son, Timbu to purchase shares in the company as he lacks sufficient finance. The three directors plan to approve a loan to finance the purchase by Timbu. The approval was done in board meeting. Finally, another preference shareholder Geetha had an initial shareholding of 6%. Happy Bhd's directors are forcing her to buy another 4% more. Advise on the issues arising regarding Capital maintenance and the rights of preference shareholders under the CA 2016. [25 marks] Required: Advise David on the issues arising under the Company's Act 2016? [25 marks]