Roger was appointed as managing director of Donavan Constructions Ltd. In May 2002 the
company landed a large contract for the renovation and improvement of the N3 highway to
Durban. They invited tenders from subcontractors for the supply of building material. Roger and
his brother, John, incorporated a close corporation called Best Bet CC. They submitted a tender
for the supply of the building material. Roger did not mention his involvement with Best Bet CC.
At the board meeting he only said: “I have it on good authority that this (Best Bet CC) is an
excellent business with good management”. The board trusted Roger and awarded the contract
to Best Bet CC.
The board of directors wants to know whether there is any basis to ground an action/ remedy against Roger on behalf of the company. Advise the board.
