Fran, Riley and Jay are the three directors of a FRJ Pty Ltd. The company has a good relationship with most of the banks. The ANZ Bank Ltd would like to increase its business and would like FRJ Pty Ltd to refer more business to them. Raj the manager for new business for the ANZ Bank Ltd comes to see Julie, the marketing director. Raj suggests to Jay that if she can convince the other two directors to write more business with the ANZ Bank Ltd, Raj will give her the following: 

• A first-class trip to Singapore for her and her boyfriend valued at $20,000, including accommodation, 

• A gold necklace valued at $12,000, 

• Two (2) tickets to Universal Studios with all expenses paid. Jay who has worked hard and in her view for little reward agrees to this. She calls a meeting of the directors of the company and tells them that she has reviewed all the banks and thinks that the company should do more business with ANZ Bank Ltd. In fact, she has not done a review of the other banks at all. Fran who is interested in property development merely nods and agrees with her recommendation. Riley says nothing, asks no questions and nods his head in agreement. Three months later you are appointed as a director of FRJ Pty Ltd. You have a friend at the ANZ Bank Ltd, and she tells you the above took place. Required: Advise the company FRJ Pty Ltd 

• What duties or responsibilities all three directors may have breached both under common law and statute law and, 

• What can the company get as compensation from the directors?

Answer rating: 100% (QA)

Answer The following are the duties or responsibilities of all the directors of the comp... View the full answer