ACCA · Question 55 · Management, administration and the regulation of companies
Scenario: 'Quantum Lithography PLC' manufactures microchips. The CEO, David, secretly sets up a rival consulting firm and diverts a lucrative government contract away from Quantum to his new firm. Another director, Fiona, fails to declare her 30% shareholding in a company that Quantum just signed a major supply contract with.
Question: Which specific statutory duty under the Companies Act 2006 has David breached?
Answer options:
Duty to act within powers (s.171).
Duty to promote the success of the company (s.172).
Duty to avoid conflicts of interest (s.175).
Duty not to accept benefits from third parties (s.176).
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