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Ryder, Justin and Leah are the only directors of Salt of the Earth Pty Ltd (SALT), a company that sells holiday adventure packages. They each

Ryder, Justin and Leah are the only directors of Salt of the Earth Pty Ltd (SALT), a company that sells holiday adventure packages. They each own 10 per cent of SALT's shares. The remainder of the shares are owned by Leah's father, Alf, who owns 15 per cent of SALT's shares, and other members of Alf's large extended family.

After a tsunami devastates much of the Western Perth coastline, SALT's board of directors announces that it will be donating $2 million to the relief effort. Alf complains that this is a misuse of shareholder funds. Discuss whether this action will breach any directors' duties under the Corporations Act 2001 (Cth) and why.

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