Property Developments Ltd is a building development company. The directors are Julian, Sol and Daniel. They believe that given the downturn in property prices, now is the time to acquire land for future property development. Gerald, who is Julian's uncle, owns some Ind in the westem growth suburbs of Melboume. Gerald is under severe financial pressure from the bank due to recent increase in interest rates and therefore keen to sell some of his land holdings. Julian is aware of this.

The directors of Property Developments Ltd are keen to buy the land. Julian honestly believe that it is none of the board's business if the land is bought from Gerald and does not disclose to the other directors his relationship to Gerard. He attends the board meeting and votes in favour of the company acquiring the land for $1,000,000 which just happens to br the market balue as well as the amount of debt gerard owes to the bank.

The other directors agree to buy the land, and assuming that land prices are depressed they do not bother to get an independent valuation of the property. Three months later the directors became aware that the land the company bought from gerard was prone to flooding and the latest commercial value for equivalent property in that area was about $650,000.

Juliana brother Raphael us the sole director of an architectural practice company. Property developments ltd wants to engage an architecture firm to design plans for their property development projects. Julian oversees the tender submissions from various architecture firms for their services. He tells Raphael what each architectural firm is going to charge. This allows Raphael to tender the lowest professional fee which the company eventually accepts. Julian does not attend the board meeting or vote as he was away on holidays at ghe time. He fid not tell the board that Raphael is his brother.

Has Julian breached any legal duty as a director of the company?

What action, if any can the other 2 directors take against Julian?

Have the other 2 directors breached any legal duty?

If a breach of duty can be established against any of the directors you are also expected to indicate the legal consequences