Tim, Amy and Lachlan are directors of a company called Centrex Ltd which is listed on the ASX. Tim and Amy have backgrounds in accounting. Lachlan has a geology background.

Centrex has made a takeover offer for Western Plains Group Limited (WPG). WPG has identified some iron ore deposits in the northern parts of Western Australia. It is in the process of obtaining the rights to start mining. Centrex has offered WPG shareholders $1.32 per share.

Centrex's takeover bid for WPG was successful. However, now that the transaction is completed it has become evident that the rock sample studies that were reviewed by the Board as part of the due diligence were flawed. Anyone with a background in geology would have identified from reviewing the reports that, the iron ore is low grade and has very high impurities. Further, they would have concluded that even at the most optimistic iron ore price, based on current technologies, this iron ore could not be extracted from the ground in a way that would cover the costs.

Under theCorporations Act,including remedies, arising from these facts, what are the issues containing in this case? You do not need to consider takeover issues.