ExpertACCA · Question 55 · Corporate and Business Law
SCENARIO: BioHeal Pharmaceuticals Ltd is developing a new vaccine. David is a director of BioHeal. During a board meeting, David learns that a rival company is selling a patent that would perfectly complement BioHeal's research. BioHeal's board decides they cannot afford the patent. David secretly buys the patent himself through his own side business and later licenses it to other companies for a massive profit.
Which statutory duty under the Companies Act 2006 has David most clearly breached?
SCENARIO: BioHeal Pharmaceuticals Ltd is developing a new vaccine. David is a director of BioHeal. During a board meeting, David learns that a rival company is selling a patent that would perfectly complement BioHeal's research. BioHeal's board decides they cannot afford the patent. David secretly buys the patent himself through his own side business and later licenses it to other companies for a massive profit.
Which statutory duty under the Companies Act 2006 has David most clearly breached?
Answer options:
Duty to act within powers (s.171).
Duty to exercise independent judgment (s.173).
Duty to avoid conflicts of interest (s.175).
Duty not to accept benefits from third parties (s.176).
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