Jean incorporates the business into a company named Jean's Coffee Shop Pty Ltd. Jean is one of three directors under the new corporate structure. The company raises capital to expand the business by issuing shares to shareholders. Jean's best friend, Jordan, owns a business that supplies milk. The pandemic has caused financial hardship for Jordan as he has not been able to sell products overseas. Jordan offers Jean a $50,000 commission if she arranges for Jean's Coffee Shop Pty Ltd to enter a supply agreement with him. Jean enters the supply agreement with Jordan on behalf of Jean's Coffee Shop Pty Ltd. She does not disclose the $50,000 commission to the other directors or the shareholders. The shareholders of Jean's Coffee Shop Pty Ltd are not happy with the new supply agreement and threaten to take legal action against Jean

Answer rating: 100% (QA)

Issue Jean as a director of Jeans Coffee Shop Pty Ltd enters into a supply agreement with her best friend Jordans business without disclosing a 50000 commission offered by Jordan The shareholders of J... View the full answer