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When Luka Modric and Harry Kane conceptualized the idea of starting their company, they asked three persons to help them start the company: John Black, Lisa White and Jordan Blue. John Black is a lawyer, Lisa White is an accountant and Jordan Blue is a stock broker. John Black drafted the articles of incorporation and completed all formalities to register the company. Lisa White provided some money for registration and along with Luka Modric and Harry Kane, decided that Luka and Harry should be the first directors. She also advised John on what to include in the documents he drafted. Jordan Blue put together a prospectus on the company to share with potential investors. This prospectus was never used. Lisa also bought a plot of land for herself $10,000.00. She then sold this land to Modric and Kane Football Co Ltd to set up their first factory. She sold it to them for $100,000.00 but never disclosed that she was making $90,000.00 off the sale for herself.
As an astute law student, you know Lisa was the promoter of the company but John and Jordan don’t know why. They thought they were promoters. Explain to John and Jordan why Lisa was a promoter and not them?
Name the legal case that establishes Lisa breached her fiduciary duty to the company when she did not disclose all the facts of the sale.
Luka and Harry want to know what remedies are available to the company. Name and describe two for them?
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