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Jonathan is the CEO of Sedap Rasa Berhad, a famous fast food company in Malaysia

Business

Jonathan is the CEO of Sedap Rasa Berhad, a famous fast food company in Malaysia. He and his handpicked board of directors are managing Sedap Rasa Berhad with only some minority shares in the company. They receive very high monthly salaries, and enjoy good profit related bonuses, but they are all under a one-year employment contract with the company. Currently, the market share price of Sedap Rasa Berhad is very much below the fair value of the company. Jonathan and the board of directors choose to invest only in projects with low risk. Explain THREE (3) ways in which Jonathan and the board of directors may have a conflict of interest with the shareholders.

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