ExpertACCA · Question 55 · Syllabus F: Management, administration and the regulation of companies
Scenario: Titanium Forge plc has three directors: Alan, Brenda, and Charles. Alan recently discovered a lucrative opportunity to supply steel to a new bridge project. Without telling the board, Alan set up his own company to take the contract. Brenda, the finance director, failed to notice that Titanium Forge was trading while insolvent for six months. Charles rarely attends board meetings.
Which statutory duty has Alan breached by taking the bridge contract for his own company?
Scenario: Titanium Forge plc has three directors: Alan, Brenda, and Charles. Alan recently discovered a lucrative opportunity to supply steel to a new bridge project. Without telling the board, Alan set up his own company to take the contract. Brenda, the finance director, failed to notice that Titanium Forge was trading while insolvent for six months. Charles rarely attends board meetings.
Which statutory duty has Alan breached by taking the bridge contract for his own company?
Answer options:
Section 171: Duty to act within powers.
Section 174: Duty to exercise reasonable care, skill and diligence.
Section 175: Duty to avoid conflicts of interest.
Section 177: Duty to declare interest in proposed transaction or arrangement.
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