In 2008 George and Hillary formed a private company, Intellect (Pty) Ltd, to develop computer games. They each took 100 shares in the company and each of them became a director of the company. Hillary, a qualified attorney, drew up the articles of association of the company stating that she was to act as the company’s attorney for a period of five years, at a salary of R20,000 per year.George has now discovered that Hillary has secretly been selling some of the newly developed games to another rival company for her own account. He therefore no longer wishes Hillary to act as attorney for Intellect (Pty) Ltd.Required:Advise George on the following:

(a) Whether Hillary has a contract in terms of the articles of association and the company is obliged to pay her damages for breach of contract. (4 marks)