Reference no: EM133243354

Telecom Solutions, a public company in the telecommunications industry. It has three directors: John, Keith and Mary. Some time ago, there was an opportunity to acquire a smaller company Lucid Pty Ltd which had developed innovative telecommunication technology. John told the board that, in his opinion, the company was a great opportunity for Telecom Solutions to expand into new markets. John did not inform the Board that John's wife was a shareholder of Lucid. The Board also relied on information provided by Keith in a presentation offering an opinion that the takeover would be highly profitable. Keith did not do any detailed research and was not aware that Lucid was in financial difficulties. This would have been easy for him to find out if he had made some basic inquiries. After Lucid was bought, Telecom Solutions found out about its financial difficulties. Telecom Solutions now has to borrow a huge amount of money to cover the debts of Lucid. Advise whether John and Keith have breached any of their director's duties under the Corporations Act 2001 (Cth). Cite sections of the legislation and case law to support your answer.