Question
Bellina is a director of Simply Cute Sdn Bhd, a manufacturer of make-up products. As she has been exposed to many business opportunities while being
Bellina is a director of Simply Cute Sdn Bhd, a manufacturer of make-up products. As she has been exposed to many business opportunities while being a director, she wishes to have her own company operating the same business as Simply Cute Sdn Bhd and decided to start her own make-up manufacturing business. She remained as director of Simply Cute Sdn Bhd and at the same time incorporates her own company called Maybellina Sdn Bhd but she did not reveal her intention to start a competing business to the board of directors of Simply Cute Sdn Bhd. Bellina has been using her position as a director of Simply Cute Sdn Berhad to grow her networking with clients, gather business ideas and travel on overseas trips to obtain business opportunities in the form of potential suppliers and customers. Recently, Simply Cute Sdn Bhd needed more machineries for its new factory to manufacture a new brand of make-up product called Kyla Cosmetics. As a director, Bellina suggests at the Board of Director's meeting a machinery supplier called AEX Machinery Sdn Bhd as a main supplier for the new factory of the company. AEX Machinery Sdn Bhd was awarded the tender even though it has been in the industry for not more than one year. The board of directors later on discovered that Bellina's stepson Ashton, is a major shareholder of AEX Machinery Sdn Bhd and Bellina never disclosed it to anyone and especially during the board meeting. Discuss if there has been a breach of director's duty in this case.
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