Mickey Mouse holds 1% of the shares in Galaxy Pty Ltd. There are four other shareholders, each of whom is also a director. Mickey suspects that the directors may have been personally profiting at the expense of the company. At a recent general meeting, a resolution was passed resolving that Galaxy Pty Ltd had no interest in a transaction, which the directors had personally undertaken and profited from. When Mickey complained to the directors, they threatened to convene a general meeting to create a constitution giving them the power to compel him to sell his shares to them.

REQUIRED: Advise Mickey on the duties the directors may have breached both under the Corporations Act 2001 (Cth) and case law by personally profiting at the expense of the company. Also discuss any courses of action under the Corporations Act 2001 (Cth) that a member like Mickey could use to initiate legal action against the directors.

NOTE: You are required to use the 4-steps process in answering this question.