Question
Pacific Plc Ltd has 03 directors (A, B and C). Together they own 85% of the shares in the company. They agree to sell a
Pacific Plc Ltd has 03 directors (A, B and C). Together they own 85% of the shares in the company. They agree to sell a plot of land to Ocean Ltd for $50,000 which is what they honestly believe it to be worth. They do not, however, have the land professionally valued until later when it is shown to be worth nearer $100,000. D and E are two minority shareholders who are considering bringing an action against the directors and the company.
Question: Can D and E succeed n the proceedings against the directors for breaking the directors' duty or an action for negligence?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started