Problem
In January 2019, Sarah was appointed managing director of Vendit Pty Ltd a company supplying vending machines and services to sporting grounds and facilities in Perth.
In February, Sarah approached the Fremantle Pleasure Centre (FPC) on behalf of Vendit to see whether they were interested in having vending machines in their grounds. Sarah was by FPC that it was interested in getting vending machines. At a board meeting of Vendit, Sarah informed the other directors that a contract with FPC would not make any profit. She said as she wanted to divert that opportunity for herself.
In March, Sarah set up her own company, Haras Pty Ltd, and in April a $500,000 contract was signed between Haras and FPC. When Vendit found out, it issued a writ against Sarah and Haras Pty Ltd claiming it is entitled to the profits that were made from the $500,000 contract with FPC.
• Advise Sarah and Haras Pty Ltd on any potential liability.