Plaintiff
company set up as joint venture between two other Companies owned by H and K
respectively.
company set up as joint venture between two other Companies owned by H and K
respectively.
H
was MD of plaintiff company.
was MD of plaintiff company.
Plaintiff
company involved in negotiations for mining licenses.
company involved in negotiations for mining licenses.
Just
before licences issued, K and his company ran into financial difficulties and
pulled out of venture.
before licences issued, K and his company ran into financial difficulties and
pulled out of venture.
H
then took licences in his own name.
then took licences in his own name.
H
later resigned as MD of plaintiff company and formed his own new company which,
at considerable risk, exploited licenses and made profits.
later resigned as MD of plaintiff company and formed his own new company which,
at considerable risk, exploited licenses and made profits.
Privy
Council held [Australian case]:
Council held [Australian case]:
Although opportunity to make profits had come to H
through his position as MD of plaintiff company, since board of plaintiff
company had known of H’s interest at all times and had resolved a year after
licenses were issued not to pursue matter further, H was not accountable for
his profit.
