Garry is one of 10 directors of a PVC Ltd. He explored investment opportunities for the PVC, including PVC investing in Downlo Ltd.

After some consideration, Garry decided that Downlo was a very risky and speculative venture and not suitable for PVC. But he did believe that this was an opportunity that he would like to take up, so he invested his own money in Downlo. Garry invested $100,000 and within six months of his investment he has made a profit of $1.5 million for himself.

Advise Garry whether he has breached any duties.

In your answer consider what penalties and/or remedies might Garry face?

Two issues are identified;

1. Whether Garry breached director duties.

2. What penalties and or remedies might Garry face