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Tan is a director of Cahaya Sdn. Bhd. With the Board of Directors' consent, he has purchased a Mercedes to be used as a company

Tan is a director of Cahaya Sdn. Bhd. With the Board of Directors' consent, he has purchased a Mercedes to be used as a company car. The car costs RM260000. Recently, the company's design department came up with a new design for mountain bike. Tan presented the prototype of the mountain bike to the Board of Directors, hoping that it would be approved and production of the mountain bike can begin. However, for some reason or another, the Board of Directors rejected it. Tan then gave the design of the mountain bike to his wife who sold the design to another company for RM50000. Answer ALL the following questions: - a) Evaluate the legality of the purchase of the Mercedes according to the rules in the Companies Act 2016. (10 marks) b) Evaluate the legality of Tan's action in relation to the design of the mountain bike according to the rules in the Companies Act 2016. (10 marks) c) Explain the purpose of the legal rules which you apply to solve the legal issue in paragraph (b) above

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