Jv Investor Pty.Ltd is 50% owned by AMGL. In 2009, AMGL was approached by Blue Ltd, the other shareholder in JV Investo, to make further major investments in JV Investor, to enable it to develop a new and highly prospective technology based on blockchain. Then directors of AMGL 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. Chester (who has an information technology qualification) assures them that all appears to be in orde. However, some of the information has been negligently prepared. This means that when the directors rely on the report and invest AMGL's funds in the technology, the investment will not be as successful as the report indicates. Have the directors of AMGL(or any of them) breached their duty of care?

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Issues Whether the directors of AMGL breached their duty of care in making the investment decision r... View the full answer