Runcorn Limited is a company that supplies sanitizers. In the Companies Register of Directors, the names of Rachel, Sharma, Reeves and Ashley are registered as directors of Runcorn Limited. Rachel was given the responsibility by the board of directors to supervise the award of franchise contracts to new investors. The company had received a number of applications from prospective franchisees. Rachel had rejected all these applications. Instead, she awarded the franchise contract to a company, AlokPlc, a Company in which Rachel receives remuneration as a Non executive director.

Sharma, is a graduate of Cambridge University and has a Masters in Accountancy. He was recently approached and asked by another Company which specializes in manufacturing gloves and hand sanitizers to serve on its board. He accepts the offer and has been duly appointed.

Ashley discovers a piece of land which has a huge potential for constructing discotheque. She purchases the land on her own behalf and sells it for a profit of 200,000

Reeves never really attends board meetings and constantly signs blank cheques. .

Advise the shareholders of Runcorn Limited.

Hi, may I know whether Rachel is actually in breach of her duty under s175 as it is a franchise, would it be considered a competing company? Also, would this be considered a transaction under s177? In relation to Sharma, I would like to ask whether it would fall under s172 and also how would I deal with it under s175? Thank you