Question
Amelia is a director of ABC Leisure Ltd, an English company which runs a chain of hotels in several different countries. She is sent by
Amelia is a director of ABC Leisure Ltd, an English company which runs a chain of hotels in several different countries. She is sent by the company to a conference in Bangkok to give a presentation on the challenges posed by the covid-19 pandemic to the global hospitality industry. In the hotel bar, she runs into James, with whom she worked for some years before joining ABC. James asks if she would be interested in a small consultancy project for a hotel at a beach resort in Cambodia; this will involve spending a week reviewing the hotel and then writing a 5,000 word report. For this, she will be paid 3,000; there is also the opportunity of investing in the hotel. Amelia is interested: she is due to take 2 weeks' annual leave immediately after the conference and finds the idea of spending some of it in Cambodia attractive. Further, at a recent Board meeting of ABC Leisure, a decision was taken that the company's operations in South-East Asia would remain confined to Thailand.
1) Advise Amelia on whether she can accept the consultancy project and/or invest in the Cambodian hotel. Explain why it is wrong if she accepts the projects or if it's alright to invest in the hotel, justify how can she do that without bringing any conflict of interest in her current role as a director of ABC.
2) What is her specific duties as a director in this situation?
3)WHAT COULD BE LEGAL ACTION BY THE SHAREHOLDERS IF ANY?
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