Ezra Property invecstments Ltd (EPI) owns a variety of shopping centres and retail units
throughout Ghana. Last year, it decided to build a new outlet shopping centre in Adenta,
Accra City. in the belief that the opening of the new light-rail line in this area wonld facilitate
customer access to this centre and could attract customers from all parts of the country. To
finance this development, EPl decided to sell some of its other properties. One of these
properties was a small retail park located within three kilometres off Weija (a large provincial
town). Gyeabour, a director of EPI was tasked with overseeing this sale. Within three weeks
of the Weija property being advertised for sale, Gyeabour reported that he had received an
offer on the property for the full asking price. Delighted with this, the Board of EPI
authorised Gyeabour to effect the sale of this property.
However, two months after the sale was completed, it was announced that one of the largest pharmaceutical companies in the worid was establishing its global head office on the site adjacent to the former weija property, and as a consequence of this fact, the value of the
property bad already increased by an excess of 60%. Upon further investigation, EPI
discovered that the weija properiy was purchased by Gyasco Properties Lld., a company
wholly owned by Gyeabour’s two sons, and that the mother-in-law of one of these sons is a
local politician in Weija. Consequently, she would have been aware of the impending
purchase of the adjacent property by the pharmaceutical company.
Describe a director’s fiduciary duty regarding conflict of interest and determine whether this
duty has been breached by Gyeabour in this situation.