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Ungu Filem Son. Bhd., a company in the entertainment industry, was offered the rights to a series of short documentary made by Kamron, a famous

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Ungu Filem Son. Bhd., a company in the entertainment industry, was offered the rights to a series of short documentary made by Kamron, a famous director. The board of directors of Ungu Filem hold a meeting to discuss the matter and subsequently decides to reject the offer on the ground that documentaries would not be profitable to Ungu Filem Sdn. Bhd. After the board rejected Kamron's offer, he approached Brant, a director in Ungu Filem personally and persuaded Bront to buy the documentaries, Bront did so and shortly afterwards sold them at a substantial profit to a Hong Kong television company, The other directors of Ungu Filem Sdn. Bhd. now intend to sue Bront for breach of his directors' duty and to claim the profits which Bront made from the sale. a) Advise Ungu Filem Sdn. Bhd. whether they will be able to successfully sue Bront and claim the profit from him. (8 Marks) b) Assuming that instead of Kamron who made the offer to sell, it was Ungu Filem that wishes to buy the documentaries, but Kamron rejected their offer, Would Bront be In breach of his director's duty for purchasing the documentaries? Explain. (4 Marks) (Total Marks: 10)

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