After speaking with Paula, Moana realises that Paula is not a director or shareholder of the company that is owed money by Anna's business. This is a relief as Moana still is not 100% sure what to do about these potential conflicts.

Unfortunately, another potential conflict has arisen when Moana is researching the other creditors (companies that Flat White Ltd need to pay) of Anna's company. This conflict relates to Paula's husband Herek. Herek is the sole director and sole shareholder of Banff Bear Meat Limted (BBM Ltd). Flat White Ltd owes a substanial amount of money to BBM Ltd. As a result, Herek has a direct interest in the outcome of the financial problems of Anna. Paula is meant to be sorting out Anna's legal problems and can't have the money owed to her husband on her mind when acting for Anna. Moana is stressed but wants to impress Paula by searching the rules to figure out what needs to be done in this situation.

a) With reference to the New Zealand Lawyers: Conduct Client Care Rules, describe what steps Paula needs to take when it becomes apparent that a conflict has arisen between her client and a third party ie her husband.

b) With reference to the New zealand Lawyers: Conduct Client Care Rules explain whether or not another lawyer at Beachside Solicitors can act for Anna in this matter.

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