Remaining Time: 3 hours, 18 minutes. 02 seconds Question Completion Status QUESTION 3 15 pointsimage Question 3 Marks: 30 Suggested time allocation: 54 Minutes At Engineering Pry Lid is a company that provides elite engineering skills to the mining industry in Australia. A1 Engineering Pty Lid has three directors Adam, Brown and Luke. Adam has been appointed the maruaging director. Brown is an executive director and Luke is appointed as an independent non-executive director. Sarah is the companies' CFO and is a qualified chartered accountant, the board refers to her for her accountancy skills. The company maintained a good profit for the first three years of operation and has recently been in discussions with a Listed company Aus Engineering Lid about a sale of one of its businesses. If Aus Engineering Lid was to acquire A1 Engineering Ply Lid's business its share price would double. Adam and Brown are in deep discussions with Aus Engineering Lid and it looks like they are about to finalise the deal. Brown contacts his share broker and suggest that he buys $100,000 worth of shares in Aus Engineering Lid before the end of the week in Brown's Family Trust name. Luke met with the directors of Aus Engineering Lid at an Engineering conference. Aus Engineering Lid has been seeking a new director and suggest to Luke if he can assist them with the acquisition of A1 Engineering Pty Lid they would offer him a executive director role and a starting salary of $650,000 a year. Luke had previously work for Aus Engineering Lid as a con tant and agrees to assist them. The board of A1 Engineering Pty Lid delegates to Sarah the task to investigate the financial returns on a proposed sale to Aus Engineering Lid. Sarah delegates the task to her secetary as she is about to go on holidays. The report (prepared by the secetary) recommends the sale, It later turns out the report is misleading as it has missed a number of costs involved in the sale. At the board meeting the directors are in a hurry to get through a number of items and the proposal is considered as the last item on the Agenda, The directors spend less than five minutes discussing the report and agree to accept the proposal. During the Board meeting Adam, who has been missing for the last two meetings, left earlier to play a round of golf and delegated the decision to other board members Three months later it becomes known that A1 Engineering sold the business undervalue and Aus Engineer Lid's share price doubles. The new board of directors of A1 Engineering seeks your advice on what action can be taken against the previous board and CFO. Required Advise the current board on the following (a) Have any of directors or officers breached the Duty of Care contained in Sec 180 of the Corporations Act, discuss with reference to cases and also consider any defences which maybe available to them? (15 marks) (b) Consider whether any of the directors are in breach of Sec 182 or 183 of the Corporations Act, discuss with references to cases and also consider any defences which maybe available to the m? (15 marks) For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). B I U S Paragraph Arial 10pt v Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save All Answers Save and Submit MacBook Pro