After several months of negotiations, the CEO of BIG Pty Ltd made the long-awaited announcement to board members that BIG Pty Ltd would be buying Melbourne based company, YAY Pty Ltd for $25m. The following persons were present at the meeting: Helen and Liam (Company Directors) and Tammy (Receptionist taking meeting minutes). News of the take-over would not be released to the public until the following week.

Ques:What if you were told that BIG Pty Ltd spent the past few months deciding whether to buy YAY Pty Ltd .. or whether to buyanother company called BOO Pty Ltd. Discuss whether Liam would breach any duties if, after learning that BIG rejected BOOPty Ltd's offer, Liam went out and made an offer to purchase BOO Pty Ltd without telling BIG Pty Ltd.

Suggested Answer Structure

Liam

Issue: Whether Liam would breach any duties if...

Rule: According to Furs Ltd v Tomkies, a director...

However: It was held in Peso....

Analyze: Here, we are told that...yet, we are then told that BIG Pty Ltd rejected...

Conclusion:Clear that, Liam did not breach...