John, Beth and Lucas are the directors of Fine Food Plc. John is the managing director. John entered into a contract on behalf of Fine Food plc with Most Meat Ltd,which undertook to supply a quantity of meat to Fine Food plc. Although Most Meat Ltd paid him a significant commission for securing the deal, John did not mention this to anyone else.
Beth has been asked by John to purchase 50 deep fryers for Fine Food plc. Unknown to other directors, Beth runs her own company that sells deep fryers and she gives the lucrative Fine Food plc contract to her own company. Beth does not mention this to the other directors of Fine Food plc.
Lucas has responsibility for Fine Food plc’s marketing strategy and he has taken a number of decisions without consulting his fellow directors. It was recently revealed that his decisions were contrary to Fine Food plc’s company policy and resulted in a loss of profits.When the board of Fine Food plc questioned Lucas’s actions, he argued that he rarely attends board meetings, and was therefore unaware of the fact that his decisions were contrary to company policy.
Advise John, Beth and Lucas as to any liability each may incur with regard to a breach of their legal duties towards Fine Food plc.
N/B (Please relevant case laws and statutes needed)