Cherry and Blossom are directors of Japan Tours Australia Pty Limited, the major shareholder of Japan Tours Australia Pty Limited is their brother Jason.

Tim Smythe the principal of the Japan School in Gundagai approaches Cherry to organise a tour of Japan for 50 students who attend the school.

Jason is currently out of the country so Cherry and Blossom decide that they will advise Tim Smythe that Japan Tours Pty Limited is not in the business of organising school tours and recommend that Tim Smythe approach Cherry Blossom Tours Pty Limited.

The directors of Cherry Blossom Tours Pty Limited are Mable and Eddie Jones the parents of Cherry's husband. Cherry and Blossom help out Cherry Blossom Tours Pty Limited with organising tours after business hours.

Cherry Blossom Tours Pty Limited organises the tour for Japan School, the tour is very successful and the company makes a profit of $100,000.

Cherry and Blossom resign as directors of Japan Tours Australia Pty Limited and commence working full time as employees for Cherry Blossom Tours Pty Limited.

Jason, asks you whether Cherry and Blossom have breached any of their statutory duties under the Corporations Act 2002 (Cth)?

Group of answer choices

1.Yes, s. 181, s 182 and s. 183.

2.No, they have not breached their director's duties, they are not directors of Cherry Blossom Tours Pty Ltd.

3.Yes, s. 588G (2).

4.Yes, s. 1318.

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