Harry, Bill and Martha are the executive directors of Xilang Pty Ltd. Harry runs day to day business of the company and Bill is in charge of the company marketing activities. Martha relies on her husband, Harry, to give her information. She rarely attends directors' meeting and does not bother to read weekly reports about the company financial position. What directors' duty has Martha breached in this situation?

Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
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Harry, Bill and Martha are the executive directors of
Xilang Pty Ltd. Harry runs day to day business of the
company and Bill is in charge of the company marketing
activities. Martha relies on her husband, Harry, to give her
information. She rarely attends directors' meeting and
does not bother to read weekly reports about the
company financial position. What directors' duty has
Martha breached in this situation?
Select one:
a. Duty of care and diligence.
b. Duty to avoid improper use of information.
c. Duty to prevent insolvent trading.
d. Duty to disclose material personal benefit.
Transcribed Image Text:Harry, Bill and Martha are the executive directors of Xilang Pty Ltd. Harry runs day to day business of the company and Bill is in charge of the company marketing activities. Martha relies on her husband, Harry, to give her information. She rarely attends directors' meeting and does not bother to read weekly reports about the company financial position. What directors' duty has Martha breached in this situation? Select one: a. Duty of care and diligence. b. Duty to avoid improper use of information. c. Duty to prevent insolvent trading. d. Duty to disclose material personal benefit.
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