a. Andy is a director of ABC Ltd, which is engaged in the business of property development.
Question:
a. Andy is a director of ABC Ltd, which is engaged in the business of property development. Contrary to the wishes of many shareholders, the company did not tender to purchase a development site that was recently sold by the government. Berry, a shareholder of the company, discovered that Andy was paid $1,000,000 by the successful tender company as a bribe to convince the other directors of ABC Ltd not to proceed with a tender on the company’s behalf.
Required
Has Andy breached his duties to ABC Ltd? If so, what liability does Andy has and what relief remedies are available for ABC Ltd claim from him?
b. Berry explained the fact to various officials of ABC Ltd and was shocked to see that no action has been taken against Andy. After further investigation, Berry discovered that Andy and his wife hold a majority of the shares of ABC Ltd, and have used their shareholding power to prevent the board of directors of the company from taking any steps against Andy. Berry wishes to know whether he himself can bring an action against Andy.
Required
Advise Berry upon this matter
Expert Answer:
Answer i Yes andy has breached his duties towards ABC company ltd ii Because he is director ... View the full answer
