Stella, is the executive director of food procurement and sits on the board of Imbiss Ltd, a company that produces beef hamburger patties and operates throughout regional Australia. Amongst other things, Stella has the job of working out how much beef is needed for the business to make enough hamburger patties as well as anything that might impact supply.

In 2021 she was given the specific task of determining the likelihood of a drought in Australia which would affect the supply of beef. Imbiss board had been considering entering into a contract with an overseas supplier as a backup plan in case of drought in Australia. Because she was in a rush to go on a holiday, Stella did not analyze any climate date before sedning a report to the board that there was only a 10% likelihood of a drought occurring during 2022. As a result, Imbiss did not take any precautions and the company decided not to enter into a contract to buy any meat from the overseas supplier. Unfortunately, Australia was hit by a drought in 2022, and Imbiss lost $2,000,000 because it had not taken any precautions to cover the risk. Based on the available data, in 2021 most weather experts had predicted a 70% chance of a drought occurring in 2021.

Assume you are an ASIC investigator who has become aware of these facts. Using the ILAC (Issue, Law, Application and Conclusion) approach Advise as to whether there are any breaches of directors duties and whether any defenses are available. Must cite relevant Australian statue and case law.