Jolly Trading Sdn Bhd, a subsidiary of Jolly Holdings Bhd has recently done the following, pursuant to a decision of its board of directors:(a) Purchased a motorcar, a three-year old Mercedes Benz, from one of its directors, Mercy, at a price of RM280,000 which reflects its market value. (5 marks)(b) Appointed Samseng, aged 72, as an additional director. (5 marks)Required:Advise the board of directors whether there has been any breach of the provisions of the Companies Act 1965 in respect of the above transactions, (a) and (b).Note: the mark allocation is shown against each transaction. (10 marks)
