Lim is a director of Hello Ltd, a manufacturer of mobile phones. Lim decided to start a mobile phone manufacturing business of his own. He remained as director of Hello Ltd while planning the start-up of his new business, but did not reveal his intention to start a competing business to the board of directors of Hello Ltd. Lim has been using his position as director of Hello Ltd to travel on overseas trips and gather business ideas and obtain business opportunities in the form of contacting potential suppliers and customers. Recently, Hello Ltd embarked on expansion plans to build a new factory. At a board of directors’ meeting, Lim recommended a company called Fast Build Pte Ltd to be the main contractor for the building project. Fast Build Pte Ltd was awarded the tender even though it was a relatively new and unknown company. The board of directors has now discovered that Lim’s brother, Henry, is a major shareholder of Fast Build Pte Ltd. Lim had made no mention of this fact.Required:Discuss whether Lim has breached his duties as director of Hello Ltd and state the consequences of any such breaches. (10 marks)
