Pike, Harri, and Raj are directors of a beauty products company. Pike is responsible for negotiations with
Question:
Pike, Harri, and Raj are directors of a beauty products company. Pike is responsible for negotiations with suppliers and customers. He agrees a contract between the company and Bleach Ltd for the supply of various chemicals. Bleach Ltd give Pike a commission of £3,000 which he does not declare. Pike enters into negotiations for the supply of hair dye with Julie, who owns a fleet of hairdressers. Unknown to Pike, Julie is Harri’s wife. Raj is responsible for research into new products and, during trials to produce a new face cream, he accidentally discovers a formula that promotes rapid hair growth. Raj does not inform the other directors of his discovery but resigns and forms a new company on his own to market the hair growth product. The new company is very successful and makes substantial profits. Discuss.
Step by Step Answer: