The board's hinction in WTM is to set the policies of the company for Fred to cany out and to approve major transactions At the time of Fred's appointment WTM was in a strong nancial position. But by August 2(111 it is insolvent. Aliquidator is appointed. Dn investigation, the following matters are discovered. 1. W purchased a new yacht worth $1fl million in March. The yacht has experimental sails. These sails prove to be inefficient and the yacht needs a $1 million refit with normal sails. As it is, it is only worth $1 million and even after refitting it would be worth only $5 million. 2. WTM has loaned $1 million to a company which has now gone into liquidation. The company was well Lmown to he in trouble and perusal of its last set of accountant would have revealed signicant cash-ow problems. The Board of W had approved the loan. Advise the liquidator whether any of the directors has breached theit duties of care and diligence