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1. FGH Sdn Bhd is a prosperous manufacturing company. It is keen to purchase a piece of land in Ipoh for its new factory. Sapu, one of its directors, owns a piece of land in Ipoh, which is ideally suited for the company's new factory. Sapu has offered to sell the land to FGH Sdn Bhd at its market price of RM2·5 million. The board of directors of FGH Sdn Bhd wishes to purchase the land but Jaga, its company secretary, has warned the board that the purchase of Sapu's land would contravene the Companies Act 1965. The board seeks your advice regarding this matter.

Advise the board of FGH Sdn Bhd whether the proposed purchase of Sapu's land would contravene the Companies Act 2016.

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