Question: Manufacturing Co. has been negotiating with Fred Paris regarding the sale of some property that represented an old manufacturing site which is now surplus to

Manufacturing Co. has been negotiating with Fred Paris regarding the sale of some property that represented an old manufacturing site which is now surplus to requirements. Because part of the site was used for manufacturing, it has to be decontaminated before it can be subdivided as a new housing development. This has complicated negotiations. Fred is a property developer and has a private company (Paris Property Development Pty Ltd) and is also a major (15%) shareholder of FP Development of which he is chairman. The negotiators for Manufacturing Co. note that the documents keep switching between Paris Property Development and FP Development and they use that as feedback as to how well they are negotiating.
Required:
Is there a corporate governance failure? Discuss.

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