In Which of the Following Situations Will a Director Have

question 10

Multiple Choice

In which of the following situations will a director have breached their duty to exercise their powers for a proper purpose?

• A)The director has put themselves in a situation where their duties to the company and their personal duties conflict.
• B)The director has agreed to vote in a certain way at future board meetings.
• C)The director has done something which no reasonable director could regard as being in the interests of the company.
• D)The director has exercised one of their powers primarily in order to gain some private advantage.

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Definitions:

Agreement

A mutual understanding or arrangement between parties delineating their rights and responsibilities.

Salesperson

An individual who sells goods or services, often employed by a company to represent its products to potential buyers.

Softwood Lumber

Wood derived from coniferous trees, often used in construction, known for being lighter and less dense than hardwood.

Assignment

The transfer of a right, property, or debt from one party to another, including contractual rights or obligations.