Case study of different law associate with Corporations Act.

Part B [30 Marks] Answer the following question Question 1 Sports Pty Ltd is a company that operates a large sports store. Bruce and Lee are the directors. Lee's daughter, Sprinter, is a talented marathon runner. Sprinter's ambition is to represent Australia at the 2021 Olympic Games in Tokyo. Lee thinks Sprinter would be a good brand ambassador for Sports Pty Ltd. Lee asks Bruce to prepare a contract between Sprinter and Sports Pty Ltd under which the company agrees to pay Sprinter $50,000 per year for four years in return for two in-store appearances per year, and a further $50,000 bonus if she is selected for the Olympic team in 2021. Sports Pty Ltd is also allowed to use photographs of Sprinter in its advertisements. Bruce is concerned about this commercial deal. He knows that at a sportsperson, similar to Sprinter's reputation, would not expect to earn such a high commercial fee for a similar deal. Bruce, however, does not wish to harm his long-standing friendship with Lee and does not voice any concern. The agreement is approved at the company's board meeting in September 2020, with all the directors (including Lee) voting in favour of it. The shareholders of the company are unaware of this contract. Some six months later, there is direct evidence to show that the finance committed by Sports Pty Ltd to this sponsorship deal with Kelly has put a large strain on the company's cashflow. Your answers below must be supported by relevant precedents and relevant provisions of the Corporations Act. Qa Advise whether any of the directors (Bruce and Lee) of Sports Pty Ltd have breached their duties under the relevant provisions of the Corporations Act 2001 (Cth); [15 marks]