Oz Beauty Ltd is a public company listed on the ASX. The CEO of the company is Eli, a daring corporate executive who is known for taking risks and making lots of money for the company through acquisitions funded by big debts. The company's CFO is Emma, who is an experienced finance expert, but is slightly overwhelmed by the complex structure that Eli has forced upon Oz Beauty Ltd and its board of directors. Emma gets most of her information from Eli and his associates. In April 2021, Eli makes his most ambitious plan to expand Oz Beauty Ltd by proposing a hostile takeover of one of Oz Beauty Ltd biggest competitors (Forward Facing Ltd). Eli does not consult any other directors before putting the proposal to the board at their April board meeting. However, the board is impressed by Eli's presentation and agrees to go forward with the takeover after a four- hour board meeting. The takeover proposes to purchase Forward Facing Ltd at a 30% premium to its current market price. This is seen as being a very expensive bid and the management of Oz Beauty Ltd is heavily criticised in the media. The bid is greeted enthusiastically by the Forward Facing Ltd shareholders. The takeover proposal is funded almost entirely by debt amounting to $5 Billion. This is substantially more debt than Oz Beauty Ltd has previously carried and will put significant pressure on the company's profitability, particularly if there is a downturn in the beauty and wellbeing industry. In addition, much of the debt will be raised from a syndicate of overseas banks, which creates a significant risk of movements in the foreign exchange rate. Despite advice from senior managers within the company that foreign exchange hedges (which protect companies that have borrowed in foreign currencies against movements in exchange rates) should be entered into, Emma decides that they are not necessary and too expensive. When the Australian dollar falls against the Euro in late 2021, the cost of funding the takeover skyrockets and the company is left with huge losses.

The company teeters on the brink of bankruptcy and investors are furious that Eli and the management team could have been so reckless in mounting the takeover for so high a price and with so much debt during a time of tightening credit markets. Particular criticism has been levelled at Eli, as his remuneration includes a bonus payment of $2 million if the company's national market share of large new construction projects exceeded 25% (which it did following the takeover of Facing Forward Pty Ltd). ASIC has made public statements that it is investigating the company's management team for possible breaches of directors duties under Australian law.

You are a lawyer for ASIC who has been asked to investigate this matter. Do you believe that Eli and/or the other directors/ board members could be in breach of s 180(1) and the general law? Follow the HIRAC method of legal problem solving.