Until three years ago, Slater was the sole shareholder and director of Lockley Quarries Ltd., a...

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Until three years ago, Slater was the sole shareholder anddirector of Lockley Quarries Ltd., a small corporation that owned aquarry and produced trimmed limestone blocks. Then an opportunityarose to purchase a second quarry at a very good price. Slater didnot have sufficient funds and persuaded Mason to come into businesswith him and to help finance the purchase of the new quarry. As aresult, Mason became a 40 percent shareholder and a director ofLockley Quarries. Slater and Mason got on well together and thebusiness prospered.
A few months ago, Slater was approached by an old friend,Chalker, who proposed
that they â€“ Chalker and Slater â€“ purchase and operate a gravelpit that had come
onto the market. Slater agreed, and a new corporation was formedto acquire the
gravel pit, with Chalker and Slater as equal shareholders anddirectors. Mason has learned of the dealings between Slater andChalker. He considers that he should have been given theopportunity to participate in the new gravel pit venture.
Do you agree? Does Mason have any remedy against Slater?

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4.1 Ratings (705 Votes)

Yes only if Chalker agrees with it Chalker and Slater have equal shares in the new gravel pit venture So decisions cannot be taken by his own If Slater succeed in convincing Chalker then Mason will get an opportunity to participate in the new venture Here there is a Conflict of Interest will happened with Slater A conflict of interest existing when a person must answer to two different individuals or groups whose needs are at odds with each other In this case serving one individual or group will injure the other But in case of Mason A See Answer

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