Monday 20 May 2024
Dear Subscriber,
I hope you had a great weekend. Please see below for the question, the answer to the previous question and associated resources. This is the web version of this newsletter.
Question: Jane is a director of Tech Solutions Ltd, a company that offers IT equipment and related services to other businesses. Jane recently discovered that one of Tech Solutions’ key clients, Global Corp, is looking for new software solutions. Jane also runs her own separate software company, Innovate Inc. Without informing the board of Tech Solutions, Jane approaches Global Corp on behalf of Innovate Inc. and secures a lucrative contract for her own company. She is confident that Tech Solutions Ltd would not have an interest in offering this sort of software solution to clients, so she didn’t think there was anything worth discussing internally.
Which of the following statements best describes Jane’s position?
- Jane has not impacted Tech Solutions Ltd’s interests by securing a contract for Innovate Inc.
- Jane has no obligation to disclose her personal dealings with Global Corp to Tech Solutions Ltd.
- Jane has breached her duty to avoid conflicts of interest.
- Jane can only be held liable if Innovate Inc. fails to deliver on the contract with Global Corp.
- Jane is entitled to pursue business opportunities on behalf of others, so long as Tech Solutions Ltd is not interested.
Study Material: Revise director’s conflicts of interest by watching the dedicated lecture linked here. If you are looking for reading material on this topic, I recommend* the ReviseSQE title you can find here.
Special Offer: We are celebrating passing 200 subscribers by offering a special discount to Practice Works AI-led learning support for SQE1. Visit https://www.practiceworks.io/sqe-prep and use IOANNIS20 for 20% off any paid plan (available only for the first 30 people who use it!). Terms & Conditions apply.
Answer and feedback to last week’s question: The composition of the House of Lords, with its mix of appointed and hereditary members, has long been a subject of debate regarding its democratic legitimacy. Despite efforts at reform, the fundamental character of the Lords remains unchanged. Which significant reform measure was enacted by the House of Lords Act 1999?
- The introduction of 26 elected members to represent regional constituencies
- The removal of the automatic right of hereditary peers to sit in the House of Lords
- The establishment of a fully elected second chamber
- The appointment of life peers by the Monarch without the advice of the Prime Minister
- The expansion of the Lords to include members of the European Parliament
Correct Answer: 2. The removal of the automatic right of hereditary peers to sit in the House of Lords. Feedback: The House of Lords Act 1999 represented a significant reform measure by removing the automatic right of hereditary peers to sit in the chamber. While the Act allowed 92 hereditary peers to remain temporarily, it marked a significant departure from the traditional composition of the House of Lords, which had been largely comprised of hereditary members. This reform aimed to address concerns about the democratic legitimacy of the House of Lords by reducing the influence of hereditary privilege and paving the way for further reforms in the future.
Thank you for subscribing and let me know how you are getting on in your preparation through our Facebook Group. Feel free to forward this email to anyone you think will benefit.
You will hear from me again soon.
All the best
Dr Ioannis Glinavos
*As an Amazon Associate, I earn from qualifying purchases.
Leave a Reply