The Lim family incorporated Good Build Pte Ltd (‘Good Build’) as the vehicle for their renovation business. For many years, the business of Good Build was conducted with Mr and Mrs Lim and their son, Luke, as directors. Mr Lim died last year. Mrs Lim became managing director of Good Build because she had promised her husband she would take over his position as managing director. However, Mrs Lim was a shadow of her former self after her husband’s death and she lost interest in running Good Build. She signed whatever cheques and documents Luke asked her to sign and went along with all of Luke’s decisions. Luke, who was under pressure to settle his debts, subsequently perpetrated a fraud on Good Build. Good Build was wound up as an insolvent company and the liquidator wished to bring a civil action against Mrs Lim.Required:Discuss whether Mrs Lim has breached any duty as managing director of Good Build. (10 marks)
