Question: (Please include case studies in answers) Homer and Simon are the directors of XYZ Systems Ltd, a computer systems application company. Together they own 75%

(Please include case studies in answers)

Homer and Simon are the directors of XYZ Systems Ltd, a computer systems application company. Together they own 75% of the shares of the company and the rest is divided between Molly 8%, Bart 5%, Rita 10%, and Susie 2%.

Homer and Simon are very excited about the software that has been developed. They believe it will revolutionise the market. They decided to sell the software considerably below market price to H&S Pty Ltd, a company they control. H&S Pty Ltd uses the software and as predicted, the software was a hit and their business flourishes

Can the director enter into such a transaction?
Did they breach their duties?
What can a shareholder do in respect of such breaches from the director's duty?
What are the remedies that are available to the shareholders?

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