Ailsa and Chen are the directors of MultiComp plc (MCP) which is a company that hires out various types of digital equipment to small businesses. Alisa is the managing director and Chen is the financial director.

Ailsa concludes a contract with Lemon Computers to supply 50 laptops to MCP, for which Ailsa is paid a personal commission by Lemon Computers. Ailsa does not mention this commission to anyone else at MCP. Lemon also supply Ailsa with a computer for her own personal use, at the same discount as those supplied to MCP.

Chen has responsibility for MCPs financial affairs and he takes a number of decisions without consulting his fellow directors. These decisions are later found to be ill advised and cause MCP to suffer a loss of profit. Also, Chen rarely attends board meetings.

a) Analyse the duty of care and skill owed by directors to the company they represent.

b) Examine the extent to which Ailsa and Chen may be in breach of their legal duties towards MCP and any action MCP may take in response.

1000 words pleasee!!