Answer Happy

Question 5: Wang is still looking at opportunities toenhance the business. He undertakes a review of the contractsinvolved in the business and decides that new arrangements need tobe made for cleaning the company’s premises. Wang proposes for SCPLto enter a cleaning contract worth $50,000 with a cleaning business(CleanCo Pty Ltd). CleanCo is a company run by Wang’s daughterElise (who lives with her mother). Wang has also consideredentering into a new coffee supply contract worth $100,000 with acompany controlled by his sister, Mei Ling. Lastly, Wang proposesto buy a catering business from his former wife, Rui, at a priceagreed between Wang and Rui over coffee last week and calculated ona paper napkin. Wang and Rui split up four months ago. The price isslightly expensive, but Wang believes that combining the cateringbusiness with his coffee expertise will produce high profits.
a) Are there any breaches of directors’ duty here?
b) What obligations does Wang have if he wants to complete thesetransactions?
c) Would your answer be any different if SCPL was a publiccompany?