Question - Pia Galli attends a wine industry conference at which she meets an agricultural scientist who is working on a process to extract value from the waste products of winemaking. The scientist is very keen to enter into a joint venture with a significant wine producer to test and hopefully commercialise the technology. At Pia's suggestion, the scientist prepares a proposal and presents it to the board of FWPL. FWPL is impressed by the technology and the opportunity it presents for the business, but because of the significant investment it is making in the organic vineyard at Robinvale, is not in a position to take it up. After the meeting, Pia phones the scientist and says that she would like to invest her own money in the project Pia does not tell her fellow FWPL directors of her decision.
a) Assume Pia makes the investment and it is highly profitable. What action, if any, could FWPL take against Pia?
b) What action, if any, could Jason Jones (owns 10 shares) take against Pia?