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DG Ltd is a major international graphic design company incorporated in Hong Kong with three...

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Accounting

DG Ltd is a major international graphic design company incorporated in Hong Kong with three directors. Mike is an executive director and the CEO. Anna and Jason are non-executive directors. Fred, a shareholder holding 20% of the voting rights of DG, is concerned that certain DGs directors may have breached their duties and seeks your advice. Required: Explain with reference to case law and/or statutory rules if the director(s) in each of the following scenarios has (have) breached any duties. Advise also as to the appropriate remedies available to DG. (a) Anna has set up her own graphic design company A Ltd. A Ltd. approached certain potential clients of DG, offered a price lower than the price quoted by DG and obtained some projects in this way. (b) In one directors meeting, Mike reported that DG has to pay HK$1 million to a supplier FAL Ltd in accordance with a term of a supply contract between DG and FAL (the Payment Term). Without checking the supply contract, Anna and Jason believed Mike and agreed to authorize the payment in the meeting. However, two months later Fred discovered that the Contract Term did not exist.

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