Wal is Organicola's bookkeeper. After Wal is accused of misleading the board, Leigh is appointed to replace Wal, and Wal is instead given responsibility for setting up Organicola's new organic vegan confectionary business. The new business makes a substantial loss but Wal initially conceals the full extent of the problem in his monthly reports. Do either of the following involve a breach of the Organicola directors' statutory duty of care, skill and diligence?

a)The directors' reliance on Wal's false income reports.

b)The directors' decision to set up the organic vegan confectionary business.