This is a case study about corporate law. Here are some tips as followed.
Duty of
Mario-director, 1) not happy with Simon; 2) know a good chance
Simon does not know the true value of the share.
Does Mario have obligation to tell Simon the good chance?
skill of diligence/care
good faith to company&member
Discuss duties to duties
Who duties own to?
At FWPL, Mario remains concerned about the level of dissent and discontent Jason is stirring up among the Galli grandchildren. He decides to contact Simon and offer to acquire Simon’s shares in FWPL. As managing director, Mario knows there is a good chance that the company will soon enter into a distribution agreement with a major retailer in the United States that will greatly enhance the value of the business. He believes now is the right time to make an offer for Simon’s shares, before the deal is finalised and announced.
Mario knows that, as a director of FWPL, he owes duties to the company. But does he owe any duties to Simon in these circumstances?
The following information is given by the lecturer, and it is not compulsory.
Here are some tips as followed.
Duty of Mario-director, 1) not happy with Simon; 2) know a good chance
Simon does not know the true value of the share.
Does Mario have obligation to tell Simon the good chance?
skill of diligence/care
good faith to company &member
Discuss duties to duties
Who duties own to?