Gonzo is a recently appointed director of U R Saved Pty Ltd, a corporation formed for

the purposes of assisting businesses which have IT problems. He is one of 10 directors

of that corporation. Upon his appointment as a director, Gonzo became concerned

about the future financial profitability of the company. He decided that he should explore

new opportunities for the company, in order to ensure its financial future. Gonzo

approached several businesses which his company had already been dealing with in

offering their IT services over the past few years.

One of the companies Gonzo approached was Travel Services R Us Pty Ltd. This was

a very profitable company which offered internet travel sales. U R Saved had previously

provided IT services to Travel Services R Us. It appeared that Travel Services R Us

was looking for new investors in order to expand the range of products it had been

offering. After some consideration, Gonzo decided that this was a very risky and

speculative venture and not suitable for U R Saved. But he did believe that this was an

opportunity that he would like to take up, so he would invested his own money in the

project. Gonzo invested $100,000 and within six months of his investment he has made

a profit of $1.5 million for himself.

Advise Gonzo of any duties that he may have breached as a director of U R Saved

and of any civil or criminal penalties that may result