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Read the question below and answer the following with reference to directors duties under companies act 2006 and rel2case law critically examine Sally's decision to

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Read the question below and answer the following with reference to directors duties under companies act 2006 and rel2case law critically examine Sally's decision to conceal the order from the large sportswear manufacturer

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Sally could not meet the demand, so she spoke to a friend Harry who had some savings and had run businesses in the past. Harry suggested that they enter business together as co- directors of a new company. He would take 50% of the shares in the business and put E20,000 into setting it up. They incorporated their business. Cool 4 Hats Lid. They bought a van for $6.000, rented a warehouse for $4,000 and put $10,000 into buying new equipment and setting up for online sales andErstribution. The company started to meet the orders. A large sportswear manufacturer contacted Sally to ask for a delivery of hats branded with its logo. This offer was never communicated to Harry. and Sally subsequently set up a new company to fulfil the order. After a short period of success. Cool 4 Hats Lid started to face financial trouble. The orders had dried up. and they had $10,000 worth of stock which they could not sell. Sally took out a loan for $ 10,000 to try to advertise the business and improve the company's website. They tried to contact Zanye, but his agent told them that he had contracts with other designers and fashion houses which meant that he could not help them with more promotion. Against the advice of their accountant, Sally and Harry decided to take out a loan of a further E20,000 from the bank. The business continued to lose money and they defaulted on repayments to the bank. The administrators were called in and they began the process of winding up the company

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