Peter owns shares in Smallville Wanderers Ltd. He has been invited to an extraordinary general meeting of the company and given notice of a resolution to remove John, one of the directors, from office. There is evidence that John was wined and dined by a sales representative of Fleetfoot Sports Shoes Ltd just before a meeting of the board voted by a majority to place a large order with Fleetfoot and made it their preferred supplier. John is also a shareholder in Fleetfoot but did not tell his fellow directors about this prior to the vote. Fleetfoot has now gone into liquidation before fulfilling and order worth AU$5,000, which Smallville are very unlikely to recover. Explain whether John has broken any of his duties a director of Smallville and whether he has any defenses.



1. What rules related to this case?
2. Has John broken any of his duties?
3. Why did he breach the law? Explain
4. Does he have any defenses?
5. Any ideas about this case?


Please help me out .

So, you skipped the class and want us to tell you what you missed?

Yup