ExpertACCA · Question 57 · 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.
By rarely attending board meetings, which duty is Charles most likely breaching?
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.
By rarely attending board meetings, which duty is Charles most likely breaching?
Answer options:
Section 172: Duty to promote the success of the company.
Section 174: Duty to exercise reasonable care, skill and diligence.
Section 176: Duty not to accept benefits from third parties.
He is not breaching any duty, as attendance is optional for non-executive directors.
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