Question：Directors will not be required to account to the company for profits received in their position as directors in which of the following circumstances?
(i) Where it can be shown that the company has lost nothing
(ii) Where the company in general meeting resolves that the profits need not be accounted for
A. Neither (I) nor (ii).
B. (ii) only.
C. (i) only.
D. Both (I) and (ii).
The correct answer is:B
It is immaterial that the company does not suffer loss. The director can join in the vote to approve the transaction as long as no fraud is committed.
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