Which of the following is NOT a breach of the duty to avoid conflicts of interest? Select one: a. Diverting a business opportunity to a director personally. b. Getting a free holiday for signing a contract, on behalf of the company, with a supplier. c. Setting up a business in competition with the company. d. Not keeping track of the company’s financial position.
Question
Which of the following is NOT a breach of the duty to avoid conflicts of interest?
Select one:
a. Diverting a business opportunity to a director personally.
b. Getting a free holiday for signing a contract, on behalf of the company, with a supplier.
c. Setting up a business in competition with the company.
d. Not keeping track of the company’s financial position.
Solution
The correct answer is:
d. Not keeping track of the company’s financial position.
This is not a breach of the duty to avoid conflicts of interest. While it may be a neglect of duty or a breach of other responsibilities, it does not directly involve a conflict between the company's interests and personal interests. The other options (a, b, and c) all involve a personal gain at the expense of the company, which is a direct conflict of interest.
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