The East Bank (EB) is a large retail bank with many branches. EB has liquidity problem and had to run its business on significantly reduced funds during the recent credit crisis. To address the problem EB raised money by making a rights issue to existing shareholders. Early 2016, EB share price dropped significantly that resulted in RM200M losses to the shareholders of the bank. This loss was due to a major project of the bank's client whereby the bank was unable to recover the loan given. This development angered many of its shareholders who requested investigation of the bad business judgment made by the directors of the bank. A comment made by local financial analyst stated that "...the failure was due to its specific decision and strategies and non-existence of an independent audit committee. (a) State the responsibilities of an agent in agency relationship. [2 marks] (b) Based on the information in the above case, identify the agent and the principle. [1 marks] (c) Explain how the shareholder and stakeholder theory apply in this case