Reference no: EM132313506

It is now August 2018 and Wonder Wardrobes now have six directors being Sarah, Felicity, Orlando, Sarah's husband David Young and Felicity's partner Sue Grey and Ryan Barton who still works full time for the business.

David Young has good accounting and bookkeeping skills and Sue Grey has extensive marketing and small business management skills. Sue in fact is the director of 2 other companies one being a company that sells computers and software and the other being an employment agency. Felicity knows about Sue's other directorships but does not think to tell the other board members the specific details of which companies Sue is a director of.

Business is doing really well, and it is agreed at a board meeting in September 2018 that the Company needs to upgrade its software and computers and also needs to recruit 2 new part time staff members.

Sue knows that her software company is very competitive and would be able to provide the exact products that Wonder Wardrobes are looking for. Sue has obtained a quote for the software and new computers from her computer company and convinces the board that is it the best deal around. The other directors do not undertake any other checks and go ahead with ordering their new computers and software from this company.

A few weeks later it is discovered that Sue was a director of the Company that supplied the computers to Wonder Wardrobes.

David is upset that this was not disclosed to the other board members and he feels that she has done the wrong thing here. Advise Sue and the other board members if in fact Sue has done anything wrong here according to the duties she owes as a director to Wonder Wardrobes. Sue argues she has done nothing wrong as the deal was a good one but the board needs clarification. What should Sue have done to avoid this situation from happening?