TUTORIAL UESTION S DIRECTORS ABC Company Ltd. is a private company engaged in the manufacturing of garments. It has four directors, Tom, Betty, Paul and James. The company has monthly board meetings, which Tom is only able to attend every four months because he resides abroad- Tom an acc0untant and signatory to the company accounts signed blank cheques and left them with the company's accountant any time he is around. The accountant has embezzled $20 million and has absconded. ABC Company entered into a contract with Equip Ltd. for the supply of equipment to their new production centre. Paul who is a director and major shareholder of Equip Ltd did not disclose his interest in Equip at the time the board took the decision to enter into the contract. James who has an interest in research discovered a synthetic fabric and he persuaded the board to invest in the manufacture of the fabric. The board refused stating that it was a risky venture even after James informed them of the high prot return- James has decided to manufacture the fabric on his own and is making good prot- The board of ABC has decided to sell a parcel of land it acquired some years ago to Betty's sister at a price far below the current market value. They justied their action to the shareholders in general meeting by a presentation in which they showed that the company was having cash ow problems due to the money embezzled by the Accountant. Peter, a minority ordinary shareholder even though he did not receive notice of the meeting stood up to ask questions at the meeting and to demand poll vote. The chairman of the meeting asked him to shut up and sit down. Advise the company on the issues raised. CONIPANY SECRETARY l. Balvin, the secretary of Port Ltd. made reservations at Holiday Inn representing that therooms were required to accommodate some of the company customers attending a workshop put on by the company. He used the rooms for his personal purposes. Port Ltd. has refused to pay Holiday Inn. Advise Holiday Inn on whether they can recover the cost from Port Ltd- 2. Mary is the secretary of ABC Ltd. Unknown to the board of directors, she entered into a contract with 'eopy world' for the purchase of 100 copying machines informing them that she is buying the machine on behalf of her company for the purpose of reselling the machines. The directors of ABC Ltd. have refused to accept delivery and pay for the machines Advise copy world whether they can bring an action for specic performance of the contract against ABC Ltd