Whitehaven Pty Ltd is engaged in the business of the repair and retail sale of reconditioned household appliances. The directors of the company are Petra, Nimma and Mimma's son, Gavin. The company makes good profits, all of which are distributed as directors' remuneration. Petra works mainly on the repair side of the business in Mordialloc, whilst Nimma spends much of her time on sales and customer relations. Disputes arise between Petra and Nimma;Petra alleging that Nimma is engaging in improper practices in her negotiations with customers from which she is deriving personal profits. It emerges that Nimma is a director of another company, All Parts Pty Ltd, which supplies replacement parts for fridges and washing machines. All Parts Pty Ltd has supplied parts to Whitehaven Pty Ltd. A customer, Mr Holding, has also informed Petra that on inquiring about the cost of repairs to his washing machine, Nimma had told him that All Parts Pty Ltd could do the job at a lower cost by 'cuttingoutthe middleman'. Nimma denies these allegations.

Advise Whitehaven Pty Ltd whether Nimma is in breach of her legal obligations as a director of thecompany.Discussalso anypossiblesanctionsthatmightbeimposedinpublicenforcement proceedings by ASIC against Nimma. (Your answer should include case law and the provisions of the Corporations Act 2001 (where relevant)).