Jack is a director of Metallica,a construction corporation.During the course of his work as director of the corporation,Jack learns that the government is about to ask for tenders for the construction of a highway.If Jack resigns from his position as director and then sets up a new corporation that successfully bids for the government contract,he will not be in breach of his duty as a director.

Question

Quizplus · Accepted Answer

Jack would be in breach of his duty as a director if he uses information obtained through his position for personal gain, even if he resigns before the bid is made. This is a conflict of interest, and directors have a duty to act in the best interest of the corporation they serve.

Jack Is a Director of Metallica,a Construction Corporation