Reference no: EM133813096

Question

In July 2021, the directors of Surefire pic decided that the company would replace all its petrol vehicles with more expensive electric ones. The board stated this would significantly reduce Surefire's profits, but that 'it was important the company did its bit for the environment'. Qing has not been legally appointed a director of Surefire Ltd, but she attends, and votes at, most board meetings. In August 2021, Qing stayed for two weeks, rent-free, in a holiday villa owned by Zesta plc, one of Surefire's main suppliers. Qing told Surefire's board about her stay. Chun is a director of Surefire. Wei is not a director of Surefire, but is a relative of Chun. In September 2021, Surefire purchased a high street store for £500,000 from Wei. Surefire bought the store because it was hoping to expand its high street sales but it has now decided that it will focus on online sales instead. It no longer needs the high street store, which has fallen substantially in value. In January 2022, Chun decided that she was tired of working for Surefire Ltd, and was going to set up her own business, in competition with Surefire Ltd. Chun did not tell Surefire's board of her intentions but did see her bank manager to discuss how she could fund her proposed business. In April 2022, Chun resigned as a director of Surefire, and Surefire is now aware of her intentions. Surefire now has a number of new directors, and they seek your advice on whether Surefire can take any action in respect of the foregoing.