Alexander has been the general director of -ZAO- JKL for three months. He has a fi xed term contract with the company that expires in 21 months time. On his appointment he was considered to have all the necessary skills to make the company more competitive. As Alexander owns 12% of the shares in the company, he was also regarded as a person who would be highly committed to the future of -ZAO- JKL.The internal auditor recently informed the board of directors of some disturbing facts. In the course of their duties they discovered that Alexander had records of ongoing discussions with key executives of -ZAO- PQR, the company’s main competitor. These records included notes that contained sensitive information on the sales performance and marketing plans of -ZAO- JKL, and it was quite clear that these had been discussed with the executives of the competitor.When the board of directors asked Alexander for an explanation of his actions, he replied that his actions were totally appropriate as it was common business practice to interact with other infl uential people in the industry and that there would be benefi ts for both companies.The board of directors was not satisfi ed with Alexander’s explanation and decided that they would need to consider Alexander’s future position in the company, as well as any action that might be taken to remedy any losses infl icted on the company by his actions.Required:
(a) Discuss the potential actions that may be instigated by -ZAO- JKL against Alexander. (6 marks)
