Homer is an accountant and a non-executive director of Simpson Homes Pty Ltd, a home renovation

company. The executive director is Bart, a qualified builder. Marge is the other non-executive director.

Homer has a busy accounting business and is therefore unable to attend all the directors' meetings.

When Homer does attend meetings, he asks very few questions and generally agrees with whatever Bart

proposes. The company was awarded a large contract to renovate several government-owned houses.

Soon after the work started, it become obvious that the company would lose considerable money on the

contract. The extent of the required work had been grossly under-estimated. Marge had queried the

contract price before the contract was entered into but was assured by Bart that the contract would be

profitable. It was also learnt that one of the main sub-contractors engaged by Simpson Homes to work

on the government contract was a plumbing and electrical company owned by Bart's son, Millhouse.

Discuss whether any of the directors have breached any of their duties, including any actions that

may be taken by ASIC.

Your answer must include case law (where relevant) and the provisions of the Corporations Act

2001.

Use Australian Law for answering