Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question C4 Super One Limited (the Company) is a limited private company with share capital registered in Hong Kong, principally engaged in the wholesale business

image text in transcribed
Question C4 Super One Limited ("the Company") is a limited private company with share capital registered in Hong Kong, principally engaged in the wholesale business of electrical appliances. Angus, Billy and Carson are the only shareholders holding equal shares and the directors of the Company. In January, Angus received a proposal letter from a German supplier, Deutsche Limited, for supplying air flyer with a new product line to Super One Limited. Angus called for a directors' meeting and all the three directors unanimously agreed by a resolution that Super One Limited had no interest in the proposal. Angus was also a sole proprietor conducting the same business. Because of the recent pandemic situation, families tend to cook and have their meals at home. Angus believed that there would be a rapid demand for air flyer in the coming future. He then used the name of his own firm to sign a contract with Deutsche Limited, and eventually earned a substantial profit from the contract. Both Billy and Carson have just known about the business transaction made by Angus's firm. They are very angry and prepare to sue Angus. Required: In the context of company law, advise Billy and Carson if any action can be brought by Super One Ltd against Angus on the transaction and the remedies available to Super One Ltd in the action, if any. (20 marks)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial accounting

Authors: Walter T. Harrison Jr., Charles T. Horngren, C. William Thom

9th edition

978-0132751216, 132751127, 132751216, 978-0132751124

Students also viewed these Law questions