Angus and Betty had been partners in a computer programming firm. Last year, the parties incorporated a company to run the partnership’s business (‘the Company’). Both Angus and Betty are the directors of the company although Angus holds the majority of the shares.Several months ago, Betty discovered that a client of the Company ended his contractual relationship with the Company and entered into a contract with another software company (‘the Contract’). Betty has discovered that Angus is also a shareholder of the software company and earned a profit from the Contract (‘the Profit’). There has been a breakdown of mutual trust between Angus and Betty ever since an argument between them over the matter two weeks ago.Required:In relation to company law:
(a) Advise Betty as to whether Angus is liable to account to the Company for the Profit. (7 marks)