Angus is the managing director of Minataur Co Ltd (MCL). Isaiah and Daniel are the other two directors of MCL. MCL invests in mining companies which it considers will be successful.

MCL holds 40% of the shares in a company called Coppel Ltd. Coppel Ltd is a large copper and nickel miner. The centrepiece in its mining operations is its mine in South Australia which it has called ATM mine. The ATM Mine has historically produced high quality copper and large amounts of nickel. It has produced large amounts of revenue for Coppel Ltd over the years. However, recent declines in the price of copper and nickel have placed pressure on Coppel Ltds profit margin.

The Chief Finance Officer of Coppel Ltd, Jack, is also concerned about declining resource prices. He has circulated a report which shows that Coppel Ltd is currently losing money, it is not making all debt repayments and has limited ability to raise further capital. Coppel Ltd has not held a meeting for several months.

MCL has asked the mine manager to cease mining nickel and instead focus on copper. It has also supported the mine managers decision to acquire larger more fuel efficient trucks from Yellow Trucks Ltd.

The combination of lower resource prices, higher fuel costs and increasing interest payments has finally caught up with Coppel Ltd. It has been placed in external administration.

Angus is a director of Ausgold Ltd. Ausgold Ltd is also in some financial difficulty. It has a number of subsidiary companies including Silvertown Ltd which has been independently valued at $20 million. Angus considers that one way to provide some much needed capital would be if MCL were to acquire Silvertown Ltd.

At a Board meeting of MCL, Angus rushes through a proposal to acquire Silvertown Ltd from Ausgold Ltd at a price of $60 million. Isaiah and Daniel say that they rely on Anguss judgment in relation to the acquisition.

Could MCL, Jack, Angus, Isaiah or Daniel be liable for breaches of directors duties?