Recently A has shown himself to be somewhat impetuous in his dealings with hotel bookings. So last month the board passed a resolution restricting the expenditure limit on hotel bookings to £5000 per month per director per hotel. This month, A, who in good faith thinks that cheaper, “no frills” hotels are the best way forward for the JS, has been arranging hotel contracts on behalf of JS at a cost of some £6000 to £8000 per month per hotel thinks this will mean cheaper but more package holidays to sell to younger customers in a time of austerity.
Whilst A was in Spain last month checking holiday resorts, he found a resort on the Spain coast with many local hotels each with much spare bed capacity. Realising that JS would probably not wish to commit to too many non-exclusive type holidays, he contracted to purchase them all in his own name.
what issues in regards to directors duties occur in these facts?
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