Queensland Mines v Hudson [1978]

Plaintiff
company set up as joint venture between two other Companies owned by H and K
respectively.
H
was MD of plaintiff company.
Plaintiff
company involved in negotiations for mining licenses.
Just
before licences issued, K and his company ran into financial difficulties and
pulled out of venture.
H
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.
Privy
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.