Question
Sam is a member of the board of directors of Apple Ltd which is specialised in providing building and construction services. He also has an
Sam is a member of the board of directors of Apple Ltd which is specialised in providing building and construction services. He also has an important shareholding in Pear Ltd, a company specialised in building supplies and decoration. In April 2023 Apple Ltd entered into a contract to buy a large batch of cement from Pear Ltd. Sam attended the board meeting which approved the contract and voted in favour of it, without revealing any link with Pear Ltd. The contract price was significantly above the normal market price and Pear Ltd made a substantial profit on the contract. a) The Companies Act 2001 codifies the duties owed to a company by its directors. Explain who would qualify to act as a director and with reference to the Companies Act 2001 and case law explain his or her duties that is owed to the company. (25 Marks) b) With reference to the Companies Act 2001, explain whether Sam has breached his duties of director. (5 Marks)
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