You work for discredit bank plc. Its business is merchant banking. The Chairman and Managing Director of the Company is, Dan, a dominant character and a well-respected figure in the City. Seven other directors sit on the board. All the Directors have a shareholding but they do not command a majority of the shares.

Last year, Dan purchased land on Discredit's behalf from Chivers-Benson plc, a company in which, unknown to Discredit, Dan is a Managing Director. The property, which was valued by CHivers- Benson, was bought by Discredit for RM400,000. The Land had since recently been sold to an innocent third party for RM90,000.

Earlier this year, Dan was approached by Detailia plc for the financing of a leisure center in Singapore. Dan informed Detalia that Discredit was not in the position to provide Detalia with financial backing but that he himself could provide finance to Detalia. Dan was able to provide the finance as a result of his contacts in the City. He made subsequently a profit of RM.5m on the deal.

These activities have now come to light.

Advise the company as to what action is open to the company and against whom such action can be taken,