Scenario...

Kate is one director of TYME Pty Ltd. she is also an owner of Happy and Rich Pty Ltd.

Mike who is a shareholder of TYME, meets Cindy who owns another business. Cindy wants to work with TYME and Mike. Mike talks to Kate and says some of the other shareholders might not be happy with his involvement in the business. Kate calls Mike and proposes that her business Happy and Rich and Mike and Cindy should all work together to form another business.

• Is Kate in breach of her duty as a director of TYME as she did not disclose this information to the other directors.

Advise Kate and the TYME board on what is required when a company (happy and rich) controlled by a director of a proprietary company ( FAPL)enters into a contract with ConsultUS.

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