Vincent was recently appointed as a director of Boleh Berhad, a public company. He was given a copy of all the minutes and resolutions passed by the board of directors before his appointment. On reading the minutes and resolutions, he is concerned over the following event and transaction which had been approved by the board.

Boleh Berhad recently awarded a new cleaning contract to Bekalan Mahal Sdn. Bhd. recommended by the chairman. The contract value is RM500,000. The previous cleaning contract was with Murah & Baik Sdn. Bhd. for RM400,000. The directors and shareholders of Bekalan Mahal Sdn. Bhd. are Ahmad and Aishah, children of Boleh Berhad's chairman, Dato' Abdu. Dato' Abdu was chairman at the meeting to approve the contract and he voted in favour of the contract. The minutes does not indicate whether Dato' Abdu informed the board of his relationship with Ahmad and Aishah.