IT Ltd (IT) specializes in producing software of animals and cartoon characters for children's websites. Anabell is the managing director and the other directors are Bob and Wiggles. Anabel holds 60% of the shares in IT. Between them Bob, Wiggles, Ng, Choi and Ghandi hold the remaining 40%. Anabel's daughter wishes to sell an animation programme she acquired two years ago because she is in an urgent need of cash. A proposal that IT acquire the programme is then put to the board. At the board meeting, a report is tabled by a computer software expert whose opinion is that the value of the programme is $500,000 and the fact that the vendor is Anabel's daughter is also disclosed. Bob and Wiggles are initially unsure of the value of the software. Bob satisfies himself by speaking to the company's receptionist who has two children. The receptionist says that children love animations on the web sites they visit. Additionally, the receptionist thinks the idea works well with IT's themed web sites. Bob knows that the receptionist and Anabel are good friends. Wiggles, who is elderly and rarely attends board meetings, says he's happy to endorse what the others decide. During the directors' meeting where the matter of the purchase of the programme is being discussed, Anabell points out to the other directors that she personally thinks the acquisition of the programme is a good idea. The contract of purchase is then approved by the board when all the directors are at the board meeting where the decision is made, and that the decision is unanimous. Choi later independently learns that Anabel has known for some time that the programme is only worth $25,000. (a) Discuss all breaches of directors' duties that may have been committed. (35 Marks) (b) Discuss all relevant shareholders' actions, if any. (15 Marks)

Advise of what actions you would take to ensure there is compliance with the Corporations Act 2001 (Cth) and the general law, world limit 1500 words limit (1000 -1500 words)