Tiroyakgosi is director of Plush Ltd, a company which is engaged in making dresses for the teenage market. The buying manager of Plush, with the authority of the board, orders a large quantity of materials from a firm of wholesalers whose price, although keenly competitive, is still sufficient to leave a good profit. Tiroyakgosi is a partner in the firm of wholesalers. This, however, is not known either to the buying manager or to the board of directors of Plush Ltd, and Tiroyakgosi does not tell them. Some time later, when all the material has in fact been delivered to Plush and has been used, the board of directors discovers the true position.Required:Advise Tiroyakgosi about the consequences of his not disclosing his interest in the contract for the purchase of the material. (10 marks)
