El Taco Pty Ltd is a Melbourne based company which owns and operates several Mexican restaurants in the city. Recently, company directors became concerned about a drop in sales and started talks about investing $1.2m in a new food truck business that would"..bring the taste of Mexico to your next corporate event.."Unfortunately, despite months of research and focus groups, the company's food truck concept was shut down after just 18 months due to poor sales. Required: Answer the following questions. You must refer to law.

(a) Analyse whether the directors breached their duty of skill, care and diligence to the company. What additional information would you need to assess whether directors breached this duty?

(b) Assumingthe directors genuinely believed that the idea would work and made no private profits analyse whether the directors qualify for any defences

(c) In light of your answer in (b), give two reasons why the directors in ASIC v Adler did not qualify for a similar defence