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SCENARIO: BioHeal Pharmaceuticals Ltd is developing a new vaccine. David is a director of BioHeal. During a board meeting, David learns that a rival company is selling a patent that would perfectly complement BioHeal's research. BioHeal's board decides they cannot afford the patent. David secretly buys the patent himself through his own side business and later licenses it to other companies for a massive profit.
Which statutory duty under the Companies Act 2006 has David most clearly breached?
ACCA · Question 57 · Corporate and Business Law
SCENARIO: BioHeal Pharmaceuticals Ltd is developing a new vaccine. David is a director of BioHeal. During a board meeting, David learns that a rival company is selling a patent that would perfectly complement BioHeal's research. BioHeal's board decides they cannot afford the patent. David secretly buys the patent himself through his own side business and later licenses it to other companies for a massive profit.
What is the most likely remedy the company will seek against David for this breach?
SCENARIO: BioHeal Pharmaceuticals Ltd is developing a new vaccine. David is a director of BioHeal. During a board meeting, David learns that a rival company is selling a patent that would perfectly complement BioHeal's research. BioHeal's board decides they cannot afford the patent. David secretly buys the patent himself through his own side business and later licenses it to other companies for a massive profit.
What is the most likely remedy the company will seek against David for this breach?
Answer options:
A fine payable to Companies House.
An account of profits, requiring David to hand over the money he made.
Specific performance to force David to work for free.
Criminal imprisonment for up to 10 years.
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