Question
Sunny, an accountant by profession, is a director of a Melbourne company, Splendid Resorts Ltd that specialises in high-end luxury accommodation. He also is a
Sunny, an accountant by profession, is a director of a Melbourne company, Splendid Resorts Ltd that specialises in high-end luxury accommodation. He also is a director of three other companies and has many community obligations. Sunny cannot always attend directors' meetings of Splendid Resorts Ltd due to his other commitments, although he always strives to do his best. Sunny is forced to miss a directors' meeting of Splendid Resorts Ltd, due to a timing clash with the board meeting of one of his other companies. At the Splendid Resorts Ltd meeting the other directors decide to borrow the funds necessary to purchase a 50% interest in a luxury hotel on a Fijian island. Shortly after payment has been made, an earthquake destroys the island and tourism virtually ceases. Splendid Resorts Ltd cannot withstand the loss of revenue and fails to pay interest on its loan. A liquidator is appointed to the company. Sunny blames the other directors for the hotel contract. The other directors blame Sunny for missing the meeting as they relied upon his accounting skills. a) In terms of the duties of care and diligence, do you consider that either Sunny
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