Which of the following is incorrect?

Tom is a director of XYZ Ltd. The company is considering purchasing Tom’s business for £200,000.

Which of the following is incorrect?
A . Tom cannot contract with XYZ Ltd as he would be placing himself in a conflict of interest and duty situation.
B . Tom must formally disclose his interest in the contract to the board.
C . The shareholders may approve the arrangement by passing an ordinary resolution.
D . The purchase consideration may be in the form of cash or shares.

View Answer

Answer: A