Daniel owns a small company called Excelsior Pty Ltd. Daniel also sits on the board of a large proprietary company called Windows as a nonexecutive director. Unfortunately, Daniel has a gambling addiction and is in significant personal debt. A stock broker tells Daniel that he can make a lot of money if he uses his position as director to gain access to the company cheques, forge a loan from Windows to Excelsior Pty Ltd, and then use this money to buy shares in Windows. Daniel follows this advice, and within one week returns enough money to discharge all his personal debts. Daniel then sells the shares that Excelsior Pty Ltd bought in Windows and pays back the total amount loaned from Destiny. ASIC discovers the fraud and takes action against Daniel for contravening his duties as company director. Daniel argues that since the loan was paid back in its entirety, Windows has not suffered any detriment.

Explain, with reference to the Corporations Act 2001 (Cth) and case law, whether Daniel has acted in accordance with his duties as a director. (DO NOT discuss penalties.)