The Albury Motor Co Ltd (hereafter called 'AMC') owns a factory in Albury. It builds a variety of small and medium sized boutique trucks. Other organizations, such as transport and logistics companies, then rent these trucks from AMC for a price.

Andrew, who has a degree in civil engineering, is a member of the board and is also employed in an executive capacity by the company as chief designer. The company was just on the point of commencing production of an order for 12 vehicles for a local transport company when the roof on the first vehicle cracked during its first tests. It was discovered that Andrew, who had been given the job of specifying what materials to use, had only tested samples of materials at low speed, rather than the high speeds which the vehicle encountered on its first test drive. As a result, AMC has had to delay production by 3 months while new materials are ordered, and has lost $1 million.

Elizabeth is also a member of the AMC board and works for the company as its operations manager. At a recent transportation conference in Perth, Elizabeth met Martin, who is the head of business development at Melbourne Trucks Pty Ltd (hereafter called 'MT'), a large logistics company in Melbourne. Elizabeth and Martin got talking and Martin mentioned to her that MT was looking to rent an additional 10 trucks for its fleet in the coming months. Two weeks later, Elizabeth resigned from her position at AMC and established her own truck company called Elizabethan Transport Services (hereafter called 'ETS') and successfully won the tender to provide the additional 10 trucks to MT. The AMC board recently found out on social media that Elizabeth is the CEO of ETS and that ETS made $5 million profit from the MT deal.

Margaret is the CFO of AMC but not a member of the board. David is an accounting student in Albury and works at AMC's head office as an intern. Last month, Margaret asked David to purchase a new company car for her to get to work more easily. This purchase was recently authorized by the AMC board. However, David has noticed that Margaret has never used the company car, since she lives one street away from AMC's head office. David also noticed that Margaret's daughter Ella has been seen driving the company car AMC bought for Margaret around Albury. Ella and David are friends on social media, where she recently posted photos of the company car writing 'thank you Mommy for buying me a new car!!!' David reported this to the AMC board.

Assume that you are an ASIC investigator and have become aware of the above facts. Using the ILAC approach (Issue, Law, Application, Conclusion) Advise on liabilities arising from the above facts and state what defenses and remedies may be available, citing relevant statutory and case law authority.