Read the case below and answer the two questions. (a) Comment on the weakness of the corporate gover ...

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Read the case below and answer the two questions. (a) Comment on the weakness of the corporate governance framework of Dysoft Global. (b) Do you agree with the decision of the Chairman in the light of the Malaysian Code on Corporate Governance (2021)? Explain your reasons based on the Chairman's responsibilities to the company. Case: It was 30 June 2021 and furniture manufacturer Dysoft Global Bhd was having an Extraordinary General Meeting. Ali is the single largest shareholder with a 25% stake in Dysoft Global, and he is also the non-executive Chairman. The second largest shareholder is Baharudin with a 10% stake; he relinquished his position as Executive Director and President in March 2021. Other than these two directors, the board consists of three independent non-executive directors. Cecilia is the managing director of Dysoft Global but is not a shareholder. She was first appointed as an independent director three years ago, re-designated as an executive director four months later, and then re-designated as managing director a year after that. Cecilia revealed during the EGM that Dysoft Global had received letters a few weeks earlier from minority shareholders claiming unlawful activities and wrongdoing in the company. The letters alleged that Ali and Baharudin had misappropriated RM150,000 and RM120,000 collectively for their own salary advances from January to July last year. Baharudin allegedly had also misappropriated a total of RM200,000 for his travelling expenses, allowance, and office rental advances over the same period; he authorised the payment vouchers and signed the cheque as one of the signatories. Cecilia claimed she was forced to sign the cheque and issue the payment to Ali and Baharudin, fearing removal from her position if she did not comply. The letters also revealed that Baharudin had created a false valuation report for the company's office premises to allow him to charge the company an unreasonable rent. Baharudin owns the fourth floor of the building and Dysoft Global is located on the third floor, but the rents for both floors were grossly inflated and charged by Baharudin's own company to Dysoft Global. When these matters were brought up during the EGM, the Chairman decided that no further action would be taken.