Director Ahmed discovers that his company is about to enter into a large supply contract with a vendor owned by his wife. What is Ahmed's legal duty regarding this contract?

Correct answer: B) He must disclose his interest to the board and obtain prior approval before the contract is signed.

Explanation

A director who is directly or indirectly interested in a contract must disclose the nature of their interest to the board. The contract requires prior approval from the board without the interested director's participation.