Advise erin as to johns status as a director


Problem

Erin is concerned about the strong friendship that has developed between Wang and John. While she has usually been consulted by Wang on major decisions in the past, Wang now seems to talk mostly with John. Erin is curious as to how John was appointed and whether he is validly acting as managing director of Pop Up. She believes that John's appointment (which was now four months ago) is now at an end.

Erin is also concerned about the bizarre behaviour that Wang has been demonstrating lately. Wang has been concerned about the profitability of the business, so he engages the advice of a psychic (Athena). Wang sees Athena once a week and she tells him what the future holds (or so he believes). Wang begins to ask increasingly specific questions about potential financial outcomes in the future and Athena gives Wang specific answers. Initially, Wang was just doing this out of interest, but he began to see a correlation between Athena's predictions and the next week's sales figures. Increasingly, Wang relies on Athena to set the sales forecasts for the JC expansion stores. He does not tell Erin or anyone else about this. Wang relies on Athena's financial projections to construct sales projections in the company's accounts. Wang puts Athena on the retainer as a 'management consultant' which Athena runs through her company 'Starwoman Enterprises Pty Ltd.' Athena takes up office next to Wang in the head office of SCPL.

Advise Erin as to John's status as a director. Could Athena be considered as a director or officer of SPCL?

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Business Law and Ethics: Advise erin as to johns status as a director
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