While Donny was actively promoting Puncakland Sdn Bhd, he purchased a piece of land at

RM500,000 and sold it to the company after its duly incorporation at RM700,000. He also

sold a processing machine to the company and made a profit of RM 50,000.

After having in business for six months, the Board of Directors discovered the fact. They

come to seek your advice as to whether the company can take any action against Donny

and if so, advise them on the remedies available.

Advise the company with reference to the relevant decided cases.