Mr Anthony & Mrs Phillip operate a Solar Panel company which installs solar panels for commercial operators in Darwin. The company is Solar Yes Pty Ltd. Mr Antohny is director of the company and Mrs Phillip is also a director and secretary of the company. Mrs Phillips husband is the Chief Financial Officer for the company. Both Mr Anthony and Mrs Phillips are equal shareholders in the company. Mrs Phillips and her husband attend a meeting with Our Way Pty Ltd. Our Way Pty Ltd has been the companys finance provider for the last 10 years. At the meeting Our Way Pty Ltd agrees to lend Solar Yes Pty Ltd $2.5m. During the meeting Mrs Phillips suggest to Our Way Pty Ltd that she start a new company Solar Residential Pty Ltd with Our Way Pty Ltd and they, together, supply solar panels to residential customers. She also mentions that Mr Anthony is not aware of the new company and would not be a director or shareholder of the new company. Our Way Pty Ltd prepares a loan agreement with Solar Yes Pty Ltd and Mrs Phillip and Mr Phillip sign the loan agreement. Our Way Pty Ltd decides not to become a shareholder of the new company Solar Residential Pty Ltd. In the past Mrs Phillip and Mr Phillip have signed other bank documents on behalf of Solar Yes Pty Ltd. The relevant manager at Our Way Pty Ltd makes no further enquiries with respect to the purpose of the loan. Mrs Phillips transfers the funds to the new company (Solar Residential Pty Ltd) and uses these funds to acquire solar panels for a new contract in the name of Solar Residential Pty Ltd without informing Mr Anthony. Mr Phillip codes the transfer as purchases so Mr Anthony is not aware of the transfer to the new company. Solar Residential undertake several jobs and returns a profit of $1.5m. Our Way Pty Ltd requests Solar Yes Pty Ltd pay the outstanding loan. Mr Anthony, discovers the transaction and responds to Our Way Pty Ltd saying Solar Yes Pty Ltd did not take out the loan and will not be paying any amount with respect to this loan. REQUIRED: Briefly discuss whether Mrs Phillip and Mr Phillip have breached any director/officer duties in establishing the new company and approaching clients. (Words 1,000)

Important: Your answer must use the IRAC structure and refer to the relevant case law.