Approve giving the lucrative cleaning contract to Spiffy

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Question

Gilford Greedy is the director of Mega Properties Inc., a corporation that owns and manages a commercial office building.

The board of directors of Mega Properties Inc. is searching for a new company to perform nightly cleaning services for the entire office building. Gilford tells the board about a commercial cleaning company called Spiffy Cleaning Services Ltd. ("Spiffy") that would provide the services they are seeking. Gilford does not tell the board that he owns 50% of the shares in Spiffy.

At the last directors' meeting for Mega Properties Inc., Gilford and the other directors all voted to approve giving the lucrative cleaning contract to Spiffy.

Did Gilford breach any of his duties as a director of Mega Properties Inc.? Explain your answer identifying the specific requirements under the OBCA.

Reference no: EM133518718

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