. the assignment is intended as a practical exercise in applying your knowledge to a scenario (like the weekly tutorial questions). You are not expected to go beyond the material in the textbook, the Corporations Act 2001 (Cth) and the relevant classes and tutorials. Assignment Question Aqua Coach & Management Ltd (Aqua) specialises in elite water sports coaching, athlete management and event management. The company grew out of a partnership business commenced ve years ago by Alice (A), a former Commonwealth Games swimmer and her former coach and manager Brad (B). Two years ago, when the company required a substantial increase in funding to expand its business, Sports Management Ltd (Sports) became the majority shareholder in Aqua. Aqua has beneted from its association with Sports, a much larger and more experienced enterprise than Aqua, including seeking advice from Sports in formulating Aqua's business expansion plans. The winding up of Aqua has commenced and a liquidator has been appointed. The nancial collapse was brought about by Aqua's involvement in a major water sports event management deal. During the relevant period the board of Aqua comprised: B, the managing director; A, an executive director and company secretary; Christine (C), a non-execuve director, chair of the board; C represents the interests of Sports on the board. C is a former merchant banker. She currently acts as consultant to various companies in the catering and accommodation industries; and David (D), a non-executive director, who is the managing director of a sports events management company. D has been seriously ill during the last eighteen months and unable to attend any board meetings. The following facts have emerged: Eighteen months ago, Aqua was one of three companies asked to tender for the management of a new water sports event held in Sydney in December 2019. At the time, Aqua was experiencing a substantial downturn in its business, with some suppliers pressing for payment of their accounts. Itwas hoped that Aqua's managementofthe new event would provide a substantial boost to its business. Aqua successfully tendered for the contract. Unfortunately, the event was a commercial failure. There was a substantial shortfall in the box ofce takings, so the costs of the event could not be met. The syndicate that originally devised the event brought proceedings against Aqua for breach of the events management contract. Suppliers who were seeking payment of their outstanding accounts obtained an order for the winding up Aqua. Aqua's tender document for the event, approved by the board of Aqua, grossly underestimated the costs involved in staging the event and made inadequate provision for insurance to cover adverse circumstances affecting its staging. During the board meeting discussion about the draft tender document, C proposed a board resolution that Aqua ask Sports to have Sports' more experienced staff scrutinise Aqua's draft tender document before it was submitted. A and B were concerned that Sports might be a competing tenderer for the contract, so they voted against C's proposal. Sports was indeed a competing tenderer. Soon after the board meeting C disclosed the details of Aqua's tender to Sports. Sports considered Aqua's tender to be commercially unrealistic and so ignored its contents in preparing its own tender document. Under the events management contract Aqua was not responsible for organising security services for the event. These were provided by Security Company Ltd (Security). Soon after Aqua won the events management contract, Security approached Aqua and offered Aqua a contract to arrange accommodation and catering for its security staff during the event. B told Security that Aqua was not interested in the contract. C said she might know a party who would be interested. B told C to go ahead and help Security nd someone to undertake the work. Security gave the contract to Enterprises Pty Ltd (Enterprises), a company for which C acts as a consultant and in which Sports has a minority shareholding. C was engaged by Enterprises as a paid consultant in the negotiation of the contract between Security and Enterprises and in the subsequent supply of the catering and accommodation services by Enterprises. Discuss what potential liability will be attracted in these circumstances in respect of the conduct of each of the directors of Aqua, in relation to their duties under general law and statute to: a. act in good faith in the best interests of the company and b. avoid a conict of interest [Do not refer to the remedies that may be available as we have yet to address the issue of remedies in class.]