Michael, Sunita and Ali are three directors of a television production company called View It Pte Ltd. You are the accountant for the company. The company is involved in producing television documentaries about wildlife.
Ali has different views about what the company should produce and believes the company should produce documentaries about health and well-being.
The ABC recently put out a tender a project to produce documentaries about health and well-being. In a board meeting Michael and Sunita voted not to do them as the profit margin was too small and also outside the expertise of the company.
Ali was not happy with this decision and resigned as a director and shareholder of View Pte Ltd. He then set up his own company called Health and Well Being Pte Ltd. He and his wife were the directors and shareholders. His company then approached ABC and offered to do the documentaries. As a result of this Ali’s company made a profit of $55,000.
View It Pte Ltd heard about this and is not happy.
REQUIRED:
Advise View It Pte Ltd if they can take action against Ali, his wife and Health and Well Being Pte Ltd for the loss of profits.
Please refer to relevant case law and legislation.