Advise glad whether mr. gibran breached

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Reference no: EM133282797

Question: Torrens Arts Pty Ltd (Torrens) is a proprietary company incorporated in New South Wales under the Corporations Act 2001 (Cth). It operates a chain of art studios in Sydney. Mr.

Gibran, the founder and managing director of the company, would like to expand the company's business into new industries.
He is approached by Zeus Pty Ltd (Zeus), a personal development company helping you people overcome their learning challenges. Zeus wants

Torrens to purchase a significant shareholding in Zeus. Mr. Gibran calls a board meeting and mentions the offer to other board members. The offer is considered by the board of Torrens, but because of considerable liquidity problems the company is going through, the board decides not to pursue the offer. Zeus then approaches Mr. Gibran in his personal capacity, and Mr. Gibran purchases the shares of Zeus and, within a month, sells them at a profit of $100,000. After a few years, when Torrens is taken over by Glad Art Gallery Pty Ltd (Glad), they wish to sue Mr. Gibran to claim the profits he made from selling his shares in Zeus. Advise Glad whether Mr. Gibran breached any of his director's duties. Explain your answer by referring to legislation and cases where relevant.

Reference no: EM133282797

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