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Olympia Is a Director of Trade Toys Ltd and Also

Question 5

True/False

Olympia is a director of Trade Toys Ltd and also is the sole shareholder of LittleKids Pty Ltd. Olympia owns no shares in Trade Toys Ltd and is not a director, officer or employee of LittleKids Pty Ltd. Trade Toys Ltd enters into a large contract with LittleKids Pty Ltd. Olympia makes no disclosure of her interest in LittleKids Pty Ltd to the directors or shareholders of Trade Toys Ltd. It is likely Olympia has breached her duty to LittleKids Pty Ltd to avoid a conflict of interest.

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