law

All the directors in OI Ltd have breached their duty of care and diligence. For the breach of fiduciary duty, in accordance with the AWA Ltd v Daniels case , Frances, Harry and Indigo breached their duty of care and diligence because as directors, they owe duty of care to the company and they failed to make enquiries about the motor racing team and OI Ltd¡¯s financial position. Besides, they never keep themselves informed about all aspects of the company¡¯s business operations when deciding to accept Greg¡¯s proposal. Although Harry and Indigo are both managers from different division, however in AWA case, it was established that the degree of care to be exercised is not limited by a director¡¯s knowledge or expertise and they must do more than merely represent their particular field of experience. They failed to do so and hence breach the fiduciary duty of care and diligence.
As for James, although he is not involved in business activities and has no particular sk...