Q.2.4 Komla is director at Cyber-Fun Ltd, a company involved in the development of electronic gaming devises and software. As the Head of New Business, she took advice from company employees who were trained in computerised game development and recommended that the company buy a particular game as it had great prospects and offered the customer a unique experience. Six months after the launch of the gaming and its device, it was discovered that market impact was low and the game/device received mediocre reviews. The company lost several millions of rand in development and production as consequence of this decision. Should Komla have relied on the expertise of her employees in evaluating the game’s potential? In what ways is she protected by business judgment defence? Briefly discuss.

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Q.2.4 Komla is director at Cyber-Fun Ltd, a company involved in the development of
electronic gaming devises and software. As the Head of New Business, she took
advice from company employees who were trained in computerised game
development and recommended that the company buy a particular game as it had
great prospects and offered the customer a unique experience. Six months after
the launch of the gaming and its device, it was discovered that market impact was
low and the game/device received mediocre reviews. The company lost several
millions of rand in development and production as consequence of this decision.
Should Komla have relied on the expertise of her employees in evaluating the
game’s potential? In what ways is she protected by business judgment defence?
Briefly discuss.

 

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