Rumbidzai and Sandra are executive directors and sole shareholders of a company called Smartwear (Pvt) Ltd. The company exports clothing and footwear to markets all over the world especially the Far East. Rumbidzai goes on a business trip to look for business and she secures large orders. One such lucrative order is from a company in Singapore which Rumbidzai decides to fulfill secretly without going through the company, Smartwear (Pvt) Ltd. Somehow Sandra gets to know about this and she is very upset. In the meantime it transpires that Sandra was once imprisoned without the option of a fine for 12 months having been found guilty of defrauding her former employer about four years ago.Required:In relation to company law:
(b) explain the legal obstacles that stand in Sandra’s way as a director of the company in light of her conviction for fraud four years ago. (3 marks)
