Question
Kevin is the managing director of a building and construction company ABC Pty Ltd. The Company is involved in developing inner city student apartments located
Kevin is the managing director of a building and construction company ABC Pty
Ltd. The Company is involved in developing inner city student apartments
located in Melbourne and Sydney. One day, Kevin becomes dissatisfied with his
position and decides to leave ABC Pty Ltd and set up his own design and
construction company developing student accommodation in regional Victoria and
New South Wales. Kevin obtains the buyers list from ABC Pty Ltd which he
believes will help his new company "Regional Student Apartments Pty Ltd"
establish its profile. Kevin also decides to make his wife (Samantha) and his son
(Brad) both directors of Regional Student Apartments Pty Ltd. Samantha
previously worked at ABC Pty Ltd as the chief financial officer. Samantha has an
accounting and auditing background. Brad was employed as a casual builder
and operated as an independent contractor on some projects at ABC Pty Ltd but
was not happy with the way he was treated and has since left the company to join
his father's new operation.
Required
(a) Advise as to whether Kevin has breached his directors' duties under the
Corporations Act 2001 (Cth) or fiduciary duties under the common law.
(b) Advise whether Samantha has breached any director or fiduciary duties.
(c) Advise whether Brad has breached any director or fiduciary duties.
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