- 10 Marks
BL – May 2015 – L1 – SB – Q2c – Company Law
Explain the duties of a company director and the legal implications of breaching them.
Question
Joe, a Pharmacist, is a director in Wuzup Pharmaceutical Company Limited. Last month, an investigation by police detectives revealed that Joe had been stealing drugs from the company’s store and selling them in his own private pharmacy. The board of Wuzup Pharmaceutical Company Limited was unaware that Joe owned and operated a private pharmacy.
It was also discovered that Joe had been accepting bribes from suppliers of chemicals to Wuzup Pharmaceutical Company Limited.
In view of these findings, the company has invited you to advise it on the duties of a company director.
i. State any FOUR duties of a company director. (4 Marks)
ii. Comment briefly on the legal implications of Joe’s actions in relation to his duties as a director in Wuzup Pharmaceutical Company Limited. (6 Marks)
Find Related Questions by Tags, levels, etc.
- Tags: Directors, Fiduciary Duties, Legal Implications
- Level: Level 1
- Topic: Company Law
- Series: MAY 2015