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Grace Ltd ('Grace') is a company limited by shares incorporated in Hong Kong and is wholly owned by the Company. Hugo, Ian and Jack are
Grace Ltd ('Grace') is a company limited by shares incorporated in Hong Kong and is wholly owned by the Company. Hugo, Ian and Jack are the directors. Grace runs the business of manufacturing fabric for making reusable masks. Unknown to Ian and Jack, Hugo is one of the two directors and a majority shareholder in another company registered under the name of Kone Ltd ('Kone') which carries on the same business as Grace. Grace had been negotiating a high-valued contract with a major client. Hugo knew all the proposed contract terms. The contract, if entered into, would bring in a lot of profits to Grace. Hugo secretly transmitted all the details about the negotiations of the contract to Luke, the other director of Kone. Luke then negotiated on behalf of Kone, with the same major client for the same high-valued contract. Kone then obtained the contract with that major client. Ian and Jack later discovered what Hugo had done and were very angry with him. Analyse in detail whether Hugo had breached any of his director's duties to Grace after having disclosed to Kone details about the negotiation of the high-valued contract between Grace and the major client. Also explain briefly the possible remedies to Grace for such breach of duty, if applicable
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