a. Honey Supermarkets Private Limited is a fast growing supermarket in Botswana. It decides to...
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Accounting
a. Honey Supermarkets Private Limited is a fast growing supermarket in Botswana. It decides to buy outTrevor buchery, a small family-owned butchery in Mahalapye. Influenced by this information, the share price of Honey Supermarkets Private Limited rises. Months later, it comes out that Trevor buchery was poorly managed and was actually in significant debt. The share price of Honey Supermarkets Private Limited drops drastically.
There are rumours that the directors of Honey Supermarkets Private Limited missed important information regarding the actual value of Trevor buchery and that the due diligence was not properly done. Honey Supermarkets Private Limited's shareholders are considering litigation against its board of directors.
i. State which directors' duties may have been breached by the directors of Honey Supermarkets Private Limited.
(2 marks)
ii. Explain the circumstances under which the board of directors of Honey Supermarkets Private Limited may be found to have breached any such duties.(8 marks)
b. Discuss the duties of a company secretary.(10 marks)
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