Consider the following story . . .

"Cricket Plus" is the name of a company that sells cricket bats and other sporting goods. There are three (3) directors of the company, each of whom hold ten (10) shares each. The directors are Joe Bloggs, Nellie Bloggs (Joe's wife) and their son Nigel Bloggs. There are also ten (10) shareholders who all hold one (1) share each.

Joe and Nellie work hard every day in their company and sell heaps of sporting equipment, but they just cannot seem to get ahead with their finances. The accounts are run by their son Nigel, who always seems to dress very well indeed and drives the latest BMW sports car. He also seems to have developed a very nasty drug habit, and his mum and dad are convinced he is taking money from the company accounts and using it to buy drugs, which they are sure he is on-selling to others. They are very concerned he is using company money to finance his drug dealing.

Joe and Nellie therefore check the accounts and find that Nigel has indeed been taking money from the accounts and after they confront him, Nigel admits to not only taking vast sums of money, but also using it to buy drugs from a known criminal and selling them for a profit.

The shareholders have also noticed a poor return on their investment and wish to find out more about what is happening. The parents of the local school also wish to see who is selling drugs to their teenagers and they think it may be Nigel but they are not sure. They approach Nigel and Nellie, but they wish to protect their son so they tell everyone to "go away and mind their own business".

Answer the following questions . . .

1. What directors duties are being breached by whom?

2. What can the shareholders and the local parents do, if anything, so they can find out if Nigel has been using company money to finance his drug empire?