Tax Advisory Pty Ltd is an accounting firm specialising in providing tax advice. Michael, John and Sarah are three directors of the company an company. Sarah recently attended a conference in Brisbane. At the conference Sarah met with the directors of Consultants Ltd and they discu including providing tax consulting services to international clients. Consultants Ltd advised Sarah they would be interested in entering a substantial service agreement with Tax Advisory Pty Ltd and paying her business. To entice them on offering her a substantial consulting fee Sarah advises them that Tax Advisory Pty Ltd provides substantial tax advis and has access to confidential information which she would be willing to disclose. Further to this Sarah advises that they could buy Michael a price as they are looking to retire and need funds as soon as possible. Sarah also provides Tax Advisory Pty Ltd's list of clients and financial info Consultants Ltd told Sarah if the arrangement was successful, they would pay 4 times the current value of the shares in Tax Advisory Ply Li substantial package and offer her the ability to contract with them directly. Sarah advised that Tax Advisory Pty Ltd may have a conflict but h could deliver on the contract. When Sarah returned to Darwin, she offered to buy Michael and John's shares at 2 times their current market value. Once she acquired th Advisory Pty Ltd for the agreed 4 times value. Further to this Sarah signed a substantial consulting contract with Tax advisory pty ltd is an accounting firm specilaised in provinding tax advice. Michael, John and sarah are tgree directors of the company and equal shareholders in tge company.Sarah recently attended a conference in Brisbane snd at conference sarah met with the directors of Consultants Ltd and they discussed future expansion plans including providing tax consulting services to international clients. Consultants Lid and S agreement. Michael and John discover what Sarah had done. Discuss whether sarah has breached her directors duty to tax.

Answer rating: 100% (QA)

Sarahs actions raise serious concerns regarding her fiduciary duties as a director of Tax Advisory Pty Ltd Directors of a company owe various duties t... View the full answer