Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Aman, Brian, Chris, Anna, and Sylvia were members of the Board of Directors of Fancy Tiles Pty Ltd (FTPL), a company engaged in the business

Aman, Brian, Chris, Anna, and Sylvia were members of the Board of Directors of Fancy Tiles Pty Ltd (FTPL), a company engaged in the business of importing and supplying tiles as wholesalers to the local market. Aman was also Managing Director. The board decided FTPL needed to become more competitive by increasing the volume of its sales by lowering its prices. FTPL obtained a loan of $5 million dollars from Loans Plus Ltd. The loan was secured by a floating charge over the assets of CPL. $3 million was used to buy more stock and $1 million to buy a large new warehouse and showrooms from Show Rooms Pty Ltd. Carl was not at the directors meeting when these decisions were made as he was in the hospital. Sylvia, as was her usual custom, had not been at the meeting but had signed the necessary documentation acknowledging her agreement to expand the business and get the loan. Anna chose not to vote at the meeting. She had said she did not know if she agreed with the decisions. Aman and Brian voted to go ahead with the expansion of the business and the loan. At about this time, Brian established contact with Lee, who was a retailer of tiles. Lee was looking for reliable suppliers but said he would not deal with FTPL as he did not like Aman. Brian did not wish to miss a good business opportunity and arranged to set up his own business as a wholesaler of tiles. Brian then entered into a contract with Lee to supply tiles to him. Required: Discuss whether EACH of Aman, Brian, Chris, Anna, and Sylvia has breached any of their directors duties. You should support your answer with reference to relevant sections of the Corporations Act 2001 and to relevant cases.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions