ExpertACCA · Question 17 · Management, administration and the regulation of companies
Section A
Director X of BuildCo Ltd learns of a lucrative property development opportunity while acting in his capacity as a director. BuildCo Ltd cannot afford to pursue the opportunity. X resigns and sets up his own company to take the contract.
Has X breached his statutory duties under the Companies Act 2006?
Section A
Director X of BuildCo Ltd learns of a lucrative property development opportunity while acting in his capacity as a director. BuildCo Ltd cannot afford to pursue the opportunity. X resigns and sets up his own company to take the contract.
Has X breached his statutory duties under the Companies Act 2006?
Answer options:
No, because he resigned before taking up the opportunity.
No, because BuildCo Ltd could not afford to pursue the opportunity anyway.
Yes, he has breached the duty to avoid conflicts of interest, even though BuildCo Ltd could not pursue the opportunity.
Yes, but only if he used confidential information belonging to BuildCo Ltd.
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