FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question
Freddy is a director of Ace Finance Ltd. The board of directors for Ace Finance Ltd have
unanimously agreed to have a marketing campaign to attract new clients to their financial
business. Freddy's nephew – Frank – is a marketing executive who runs his own business. Freddy
informs his nephew of the possibility of obtaining the marketing contract with Ace Finance Ltd.
Freddy also discloses to Frank the price range that the company will consider. Freddy attends the
board meeting where they consider who will get the marketing contract, but he does not disclose
his connection with his nephew. After looking at all the potential candidates, the board of directors
have selected Frank's business to do the marketing campaign for Ace Finance Ltd.
Has Freddy breached his statutory obligations under the Corporations Act (Cth) 2001?
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