Background You are a summer intern for EXQ, a large consulting firm. Granda Corp ('Granda'), a company incorporated in Zubrowka,1 is a major client of EXQ. Granda wishes to set up a subsidiary company - Granda NZ Ltd (''GNZL') - in New Zealand. Required You have a meeting with Jana Blanka, a representative of Granda. Jana tells you that Zubrowka is a country that likes to use the latest technology and has very little government regulation of companies. Jana raises four issues (set out in paragraphs (a) to (d) below.) Write a memo for EXQ responding to the issues Jana raises

(a) "All directors will reside in Zubrowka and will pursue the interests of Granda in managing GNZL. We also expect Granda to be a corporate director." (b) "In Zubrowka, once a company is registered, courts cannot challenge corporate existence. We assume it is the same in New Zealand." (c) "Granda uses AI (artificial intelligence) for all decision-making by directors. We expect the directors of GNZL to similarly use AI."

d) "Most of the directors of GNZL will be non-executive directors. In Zubrowka, only executive directors owe a duty of competence."