Martha is an executive director of Mogmax Pty Ltd that specialises in the manufacturing of fertilisers. She attends a conference at which she meets an agricultural scientist, Sam, who is keen to enter into a business arrangement with the production of fertilisers from manure, compost and kelp products. Sam is keen to enter into a joint venture to produce fertilisers at a large scale. At Martha's suggestion, Sam prepares a proposal and presents it to the board of Mogmax Pty Ltd. Mogmax Pty Ltd is impressed by the business opportunity however, because of the significant investment that Mogmax undertook last year in machinery, it is not in a position to take up the business opportunity. After the meeting, Martha phones Sam and offers to invest her own money in the business project. Martha does not tell the other directors of her decision. Is Martha allowed to make the investment?

Martha and Sam form a company, Fretmet Pty Ltd without the knowledge of the other directors. Martha and Sam are the directors of the new company. Martha causes Fretmet Pty Ltd to submit a tender for a project in competition with Mogmax. Fretmet is the successful tenderer and is awarded the contract and has made a substantial profit.

Referring to relevant case law and the Corporations Act 2001 (Cth), advise Martha about the following:

(a) Whether she has breached any duties as a director under the Corporations Act 2001 (Cth)

(b) What are the consequences (remedies and penalties) for the breach of duties if any?

(c) Can Martha be granted relief from liability?