Breach of Directors' Duties by Adoni

(a)
The issue in this question is if Adoni has breached his duties towards DIG under the general law
and also under the provisions of Corporations Act, 2001 (Cth).
In this regard, there are four basic duties of the directors. These are also being mentioned in the
Corporations Act. . The duty of care and diligence has been mentioned in section 180. A similar
duty is also applicable under the common law. This duty requires that the directors should act
with care and diligence. That is expected to be shown by a reasonable person under similar
circumstances (Keay, 2013). There is also the duty of good faith. The city is mentioned in
section 181 and it requires that the directors should act in good faith. Therefore, the directors
should act for proper purpose. Underestimate the directors should avoid any conflicts of interest.
In case any such conflict arises, it would be revealed and managed by the directors. This is a
fiduciary duty that is also imposed by the common law (Burrows, 2010). Another significant
duty is present in section 182. Under this duty, the directors are required to make sure that they
do not use their position improperly. The use of the position can be described as improper if it
has been used for achieving your personal benefit for the directors. In the same way, section 183
imposes an obligation on the directors. According to it, the directors should not use the
information received by them improperly.
In the present case, Adoni purchase the lease from WM in his own name. After some time he
resigned from the board of DIG and sold the lease to a company formed by him Adoni Mining
Pty Ltd. at significant profit. Under the circumstances, it can be said that there has been a breach
of the duties of selectors mentioned above by Adoni.