Arjun, Bongsu and Chan are the directors of Cahaya Sdn Bhd, a company dealing in the export of timber. Last month, Arjun was sent to Japan on behalf of Cahaya Sdn Bhd to negotiate a contract with a Japanese company. Unfortunately the negotiations were not successful, and it was made clear to Arjun that the Japanese company did not want to offer any contract to Cahaya Sdn Bhd. Arjun reported this to the board of directors upon his return. Two weeks later he resigned from the company and managed to secure the contract with the Japanese company in his own name. He has made a very substantial profit from this contract.Cahaya Sdn Bhd has now discovered this and wishes to sue Arjun for breach of fiduciary duty as a director and recover the profit he has made.Required:Advise Cahaya Sdn Bhd on the legal position. (10 marks)
