The board of directors of Northshore plc decided to make a takeover bid for South Shore plc. After the decision was taken, but before it was announced the following chain of events occurred:

• Blue, a director of Northshore plc, buys shares in South Shore plc
• Blue tells his friend White about the likelihood of the takeover and White buys shares in South Shore
• White in turn passes on the information to his friend Green who also buys shares in South Shore
• Green tells his friend Grey about the information, and he too buys shares in South Shore
• At a dinner party Blue, without telling him about the takeover proposal, advises his brother Tom to buy shares in South Shore and Tom does so.

Questions:

1. Explain the Fiduciary duties of Directors and their relevance.