DIRECTORS DUTIES

Toolbox was a comedian. Due to his roguish humor, Toolbox gained many offers to serve on boards of companies. (He made the meetings more lively and introduced a new perspective into board room discussions). In the course of serving as a Director of Not the Sharpest in the Shed Ltd (NTSS), Toolbox learnt a lot about NTSS's market strategy for the coming years. For example, he learnt it was starting an ad campaign aimed at Generation Y, it was about to lose a court case and it was considering expanding its business overseas. Subsequent to learning these matters, but before any of them actually occurred, Toolbox sold his NTSS shares and discussed with directors of another company on whose board he served the feasibility of starting an ad campaign aimed at Generation Y. Has Toolbox breached his duties to NTSS? If so, which ones and what is the strength of the case against him? In so doing discuss relevant cases and evidence. Also discuss the penalties he may face and what occurs when there are a variety of actions that could be taken against a director. Why have these sorts of situations lead to discussion by judges and scholars of white collar crime?