Wizard has three directors on its board: Amy, Ben and Cath. The directors are considering acquiring a new ride for Funlandia. Ace has been invited to make a presentation to the board on the possibilities. The day before the presentation, Amy ran into Tau, one of the directors of Ace at her daughter's tennis club. Tau is president of the club. Tau hinted that if Ace's presentation went well, Amy's daughter would receive a favourable draw into the next tennis competition. Amy smiled and said 'I think we have a mutually beneficial arrangement!'.

Cath is the financial officer of Wizard, however, she has been feeling run down lately and did not bother to analyse the figures that Ace provided in relation to the new ride.

Amy persuaded Ben and Cath to sign a contract with Ace for the new ride. Unfortunately, this was an expensive disaster for Wizard. Amy's daughter has won the club tennis tournament.

Required: Advise the corporate regulator, ASIC whether they can take any action against Amy and Cath, as well as possible defences Amy and Cath may have. Refer to legislation and cases in your answer.