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Question 2 Neighbourhood Company Limited (the Company') is a private company selling fashion. It has three directors, namely, Alan, Billy and Charles. They are holding

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Question 2 Neighbourhood Company Limited ("the Company') is a private company selling fashion. It has three directors, namely, Alan, Billy and Charles. They are holding 40%, 30% and 30% of the Company's shares respectively. Charles signed a contract on behalf of the Company with his girlfriend, Diana, a famous artist, for promoting the Company's image and products. Alan and Billy knew that the contract was signed, but they did not know the relationship between Charles and Diana. (a) (b) Advise Charles whether he has breached any duties of a director on signing the contract. (10 marks) Advise Alan and Billy whether they could remove Charles from the office as a director. (10 marks) (Total 20 marks)

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