Ali,AhmadandAmjadaretheonlyshareholdersanddirectorsofQualitiesFineFurniturePte Ltd.This company manufactures and sells furniture from teak wood.Ali is involved in the day todayrunningandmanagementofthefactory,whileAhmadandAmjadareinvolvedinthebusinessdevelopmentaspectofthecompany.Thecompanydoesverywellanditisdecided during a board meeting that the company needs to upgrade its office equipment.

AhmadinformsthecompanyduringthemeetingthatWhizComputershasdevelopedanew "state of the art" computer system.Ahmad informs the board that this would be most suitable to the company.Unknown to Amjad and Ali, Whiz Computers is controlled by his sister, Aqilah.Amjad howeverhas some knowledge that Ahmad has some form of interest in the company but he does not know to what extent and is not particularly interested.Therefore Amjad does not ask for any details and does not inform the board of this.

Qualities Find Furniture Pte Ltd is approached by Timber Woods Limited fora joint venture in themanufacturingoffurniturefortheInternationalMarket.However,theboardrejectsthis proposal.Ali decides to take up this joint venture with Timber Woods Ltd.He does not inform the board of his decision.This new company which is formed becomes very successful.

AmjadrecentlymarriesFaridahanaccountant.Onedaylookingatthefinancialaccountsand managementofthecompany,FaridahinformsAmjadthatthecompanyisbadlyrun.Amjad whoisnotinterestedinthebusinessofthecompanyagreestotransferpartofhissharestohis wife, however, Ali and Ahmad is against this transfer and gives no reasons for their refusal.

Adviseallrelevantpartiesoftheirpossiblebreachesofdirectorsdutiesunderthecommonlaw and Companies Act