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Code of Corporate Governance for Public Listed Companies (The "Code") of Oman

COMPANY LAW CASE REVIEW

MCBS is a tertiary institution with a core mandate of teaching, learning, research and award of academic certificate to deserving students. Its registered office is at bosher in Muscat and has a total number of one thousand faculty members. The faculty members are from diverse educational background with vast experience and exposure. The college has substantial number of students who have travelled across the world for different vacations, family get-together and others for medical treatment. Some of the students paid for their tuition while others enjoy government scholarship. The college has a seven members board of director with Prof. Firdaous as the Chairman of the board.

Due to coronavirus pandemic and the fear of its spread, the board in its meeting decided to go hundred percent online and allow both students and faculty to engage in teaching and learning from the comfort of their homes. As a way of facilitating effective teaching and learning, the board decided to buy two thousand laptops for the faculty and other administrative staff. As part of its policy on transparency, the college placed an advert for companies specialized in the supply of laptops to bid and send their quotations.Seven companies submitted their bids, quotations and company profile demonstrating their experience and competence to deliver within the timeframe. At the end, the contract to supply two thousand laptops at the price of one thousand dollars per one was awarded to Firdaous Integrated Services Limited, a company owned by the brother to the Chairman board of directors. The Chairman Board of directors has been accused of violating the rules on Related Party Transaction which he has denied.

1a. Using FILAC method, raise and discuss one legal issue arising from the fact of this case. Refer to the Code of Corporate Governance for Public Listed Companies 2015 for the applicable laws and rules on Related Party Transactions.

1b. Would your answer in 1a be different if the contract was awarded to one of the board members?5 Marks

1c. Would your answer in 1a be different if the contract was awarded to the third wife of the Chairman board of director?5 Marks