Maribelle and Deigo are the only directors of PlantMart Pty Ltd ("PlantMart"). PlantMart is in the business of selling horticultural products. Zahara sells plants wholesale. She has a lot of small shrubs she needs to sell quickly. She approaches Maribelle and asks her if PlantMart would be interested in buying the shrubs at half price. Maribelle thinks this is a great deal and buys the plants herself and sells them and makes a large profit for herself. Which of the following is true:

Question

Quizplus · Accepted Answer

Maribelle has taken up an opportunity for herself that belonged to the company thus not acting in the best interest of the company and creating a conflict of interest. We do not know if Maribelle has made disclosure under Corporations Act section 191 of under the company's constitution thus allowing the transaction]

Maribelle and Deigo Are the Only Directors of PlantMart Pty