Rahman has been engaged in the business of carpet manufacturing as a sole proprietor for the last 10 years. In addition to his own business, Rahman along with his wife and their two sons established Orient Carpets (Private) Limited (‘OCPL’) in 2008 with the main objects of manufacturing and exporting carpets. Rahman has been OCPL’s chief executive since 2008. On the advice of OCPL’s financial advisor, the shareholders want to convert OCPL into a public company.Required:Under the Companies Ordinance, 1984:

(c) advise Rahman on the implications of the appointment of his wife as the chief executive of OCPL. (2 marks)