John had been a director of Computer Service Ltd (‘CS Ltd’) before he resigned from the company a year ago. During John’s office, Software Ltd had been an important client of CS Ltd and John had been the person responsible for liaising with Software Ltd.About two years ago, there was a dispute between the chairman of the board of directors of CS Ltd and the majority shareholders of Software Ltd. Ever since then, Software Ltd has stopped using the services of CS Ltd.One month ago, Software Ltd learned that John has set up his own company as a sole proprietor, which provides services similar to those of CS Ltd. Software Ltd has just entered into a service contract with John under which John agreed to provide the services. John has earned profit from the contract.Required:In relation to company law, advise John as to whether he needs to account for the profit he earned from the contract with Software Ltd to CS Ltd. (10 marks)