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Question 13 Ali, Ahmad and Amjad are the only shareholders and directors of Qualities Fine Furniture Pte Ltd. This company manufactures and sells furniture from

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Question 13 Ali, Ahmad and Amjad are the only shareholders and directors of Qualities Fine Furniture Pte Ltd. This company manufactures and sells furniture from teak wood. Ali is involved in the day to day running and management of the factory, while Ahmad and Amjad are involved in the business development aspect of the company. The company does very well and it is decided during a board meeting that the company needs to upgrade its ofce equipments. Ahmad informs the company during the meeting that Whiz Computers has developed a new \"state of the art\" computer system. Ahmad informs the board that this would be most suitable to the company. Unknown to Amjad and Ali, Whiz Computers is controlled by his sister, Aqilah. Amj ad however has some knowledge that Ahmad has some form of interest in the company but he does not know to what extent and is not particularly interested. Therefore Amjad does not ask for any details and does not inform the board of this. Qualities Find Furniture Pte Ltd is approached by Timber Woods Limited for a joint venture in the manufacturing of furniture for the International Market. However, the board rejects this proposal. Ali decides to take up this joint venture with Timber Woods Ltd. He does not inform the board of his decision. This new company which is formed becomes very successful. Amjad recently marries Faridah an accountant. One day looking at the financial accounts and management of the company, Faridah informs Amjad that the company is badly run. Amjad who is not interested in the business of the company agrees to transfer part of his shares to his wife, however, Ali and Ahmad is against this transfer and gives no reasons for their refusal. Advise all relevant parties of their possible breaches of directors duties under the common law and Companies Act

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