I am a director of a Ltd company, operating since 2010, we have 3 directors, a (not so active) board and shareholders. The Directors and Board members own 85% of the company. I have not been actively involved for the past one year due to personal issues and also mainly due to not being able to be around the other director (MD) and his wife! Recently I have come to know the MD has set up a few other companies, where services which use to be offered directly to our companies are now being directed via his new company and then to ours. One of the new companies the MD is a director of and the other one, he uses his brother's company. They sell products which use to be purchased directly into our company but he has now routed this via one of his companies, making a profit/cut. they also provide a service via the other company our clients pay into one new company and then they take their cut and pay the rest if any into our company I have tried to bring this up with the board members individually, they are also investors, and dont seem to have much of a problem with it or brush it under the carpet. He has come clean to the board and said if anyone can get the product or service for cheaper, they should! but the board are working in corporate world and dont have the knowhow or time to do this. The MD has also got his wife trained up using company funds and now she is a contractor, she makes up ramdom invoices and bills our company. I want to know if what they are doing is fraud? or its okay what they are doing? and what steps I can take to clear this up, the MD is on a decent wage from the company too, but operating 3 businesses which interlock and so he makes more money.