Honey has been the managing director of Hazy Berhad since 2010. Hazy berhad is involved in...

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Honey has been the managing director of Hazy Berhad since 2010. Hazy berhad is involved in marketing business. The company was in need of a delivery service rider and Hony suggested BTS Delivery Sdn Bhd to Hazy Berhad. Honey has some shares in BTS Delivery Sdn Bhd, where his wife Lisa is the director of BTS Delivery Sdn Bhd. This was disclosed to the board of directors of Hazy Berhad, so all the directors have knowledge of this fact. During the board meeting, a few other delivey service companies were shortlisted. However, the board of directors decided to appoint BTS Devlivery Sdn Bhd as a delivery service provided. Advise the company (Hazy Berhad) whether there is any breach of directos' duties by Honey. Also, explain in detail all the duties of a director. Honey has been the managing director of Hazy Berhad since 2010. Hazy berhad is involved in marketing business. The company was in need of a delivery service rider and Hony suggested BTS Delivery Sdn Bhd to Hazy Berhad. Honey has some shares in BTS Delivery Sdn Bhd, where his wife Lisa is the director of BTS Delivery Sdn Bhd. This was disclosed to the board of directors of Hazy Berhad, so all the directors have knowledge of this fact. During the board meeting, a few other delivey service companies were shortlisted. However, the board of directors decided to appoint BTS Devlivery Sdn Bhd as a delivery service provided. Advise the company (Hazy Berhad) whether there is any breach of directos' duties by Honey. Also, explain in detail all the duties of a director.

Answer rating: 100% (QA)

Yes there is a breach of directors duties by Honey in this situation As a director of Hazy Berhad Ho... View the full answer