Jack is one of 4 directors of Electric Cars Ltd; the company imports green, environmentally friendly vehicles from a sole supplier Acheron Ltd in the UK. Every year the contract between Electric Cars Ltd and Acheron is renegotiated however this year, Acheron indicate to Jack they want to expand their business in New Zealand and include electric bikes. Jack tells the other directors that Electric Cars is reducing their business in New Zealand but secretly incorporates another company. Jack and his wife are the directors of the new company and it takes 50% of Electric cars business and takes up the opportunity to sell electric bikes as well. Jack resigns from Electric cars. The other directors realise that business is suddenly declining and discover that Jack’s new company is taking their business. With reference to directors 1. Explain to Jack – who is eligible to be a director of a company in New Zealand? a. Would your answer be different if Jack lived in the USA? b. If Jack had previously stolen money from his former employer – would Jack still be eligible to be a director? 2. What common law doctrine has Jack breached in regard to Electric Cars Ltd? – explain your answer
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Jack is one of 4 directors of Electric Cars Ltd; the company imports green, environmentally friendly vehicles from a sole supplier Acheron Ltd in the UK. Every year the contract between Electric Cars Ltd and Acheron is renegotiated however this year, Acheron indicate to Jack they want to expand their business in New Zealand and include electric bikes. Jack tells the other directors that Electric Cars is reducing their business in New Zealand but secretly incorporates another company. Jack and his wife are the directors of the new company and it takes 50% of Electric cars business and takes up the opportunity to sell electric bikes as well. Jack resigns from Electric cars.
The other directors realise that business is suddenly declining and discover that Jack’s new company is taking their business.
With reference to directors
1. Explain to Jack – who is eligible to be a director of a company in New Zealand?
a. Would your answer be different if Jack lived in the USA?
b. If Jack had previously stolen money from his former employer – would Jack still be eligible to be a director?
2. What common law doctrine has Jack breached in regard to Electric Cars Ltd? – explain your answer
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