Dr Obiter became a director of a company whose business was the management of private clients investment
Question:
Dr Obiter became a director of a company whose business was the management of private client’s investment in foreign exchange markets, after being introduced to the business by Mr Chipper, the other director of the company. Dr Obiter’s first client was Jack, a chartered accountant. Dr Obiter spent a bit of time explaining to Jack the contract and associated risks – and as a result, Jack invested $350K. Dr Obiter was very pleased as Jack’s investment meant the company was making a comfortable profit. However, Jack’s money was taken from the company’s bank account, and Mr Chipper was subsequently charged with fraud. Dr Obiter immediately sought to pay the creditors of the company and removed the remaining funds from the reach of Mr Chipper. As a result, Jack received only $200K of his money back. Do not discuss Mr Chipper.
Advise Jack. Refer to whether:
1. Dr Obiter has breached his fiduciary duty to the company
