George Calamity is the founder of Hellenic Restaurants Ltd, an ASX-listed public company specialising in fine dining restaurant experiences. George Calamity is also the CEO and a shareholder in Hellenic Restaurants. The company has experienced significant growth since its listing on the ASX in 2015, attracting even the attention of international investors. However, fortune takes a turn for the worse during the 2020-2021 virus pandemic when Hellenic Restaurants are forced to close all their restaurants. By early May 2021, there is genuine concern that Hellenic Restaurants is insolvent or is nearing insolvency, although George Calamity has not publicly indicated any financial problems in the company. A number of shareholders of Hellenic Restaurants raise the alarm after they discover (following an investigation of the company books) a number of events: 1. In April 2021, George Calamity authorised a transaction to issue 10,000 shares for free to his brother, Con Calamity. 2. In Feb 2021, George Calamity authorised the purchase of a Ferrari worth $900,000 for his “personal travel needs” 3. George Calamity nor any of the other 12 directors on the Board of Hellenic Restaurants have met for a Board meeting since 2019 4. In Jan 2021, George Calamity instructed company management to delay payment of salaries for employees so that “there is money available for executive bonuses to be paid in 2021”. Question: Which directors duties have George Calamity and the other directors of Hellenic Restaurants possibly breached? Make sure you use I.R.A.C. to structure your answer and make reference to the relevant sections from the Corporations Act 2001 (Cth) and case law.

Answer rating: 100% (QA)

ISSUEThe issue is regarding the default in directors duties by director Mr George Calamity others RULE There are certain general rules defined under D... View the full answer