If the director of a company engaged the services of an organisation of which he or she was a part-owner, and therefore stood to make financial gains from the arrangement, it would be:
A) illegal.
B) only permissible if agreed to by a majority vote of shareholders at the company's annual general meeting (AGM).
C) a conflict of interest.
D) a breach of the director's employment contract.
E) all of the above.

Question

Quizplus · Accepted Answer

This would be a conflict of interest as the director's personal financial interests would conflict with their duty to act in the best interests of the company. It may also be against company policy and potentially breach the director's employment contract. However, it may not necessarily be illegal and may not require shareholder approval, depending on the specific circumstances and applicable laws and regulations.

If the Director of a Company Engaged the Services of an Organisation