XYZ Pty Ltd is 50% owned by BIG LTD. In 2009, BIG Ltd was approached by BLACK Ltd, the other shareholder in XYZ, to make a further major investment in XYZ, to enable it to develop a new and highly prospective technology based on Bitcoin mining. The then directors of BIG Ltd delegated to others, including a computer expert, the task of obtaining the technical information about the prospects of the technology. The report prepared for the directors indicates that the proposed investment should be very successful. Queried by his fellow directors about the optimistic forecasts, Mr Jobbs (who has an information technology qualification) assures them that all appears to be in order. However, some of the information has been negligently prepared. This means that, when the directors rely on the report and invest BIG Ltds funds in the technology, the investment will not be as successful as the report indicates.

Required:

Explain the duties owed by Directors and Officers of the Company and discuss the consequences of any breaches of the Corporations Act 2001.