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David, Evan and Frank are directors of WaterSuperFun

Evan and Frank are directors of WaterSuperFun Pty Ltd (WSF). WSF specialises in
opening and operating water theme parks around Australia. David and Evan each
own 40% of the company and Frank owns 20%. One of Evan’s favourite things to do
outside of his job is to watch stars at night through his telescope. In recent
months Evan has been taking this ‘star-gazing’ seriously and has increasingly
been discussing it with his fellow directors. At a board meeting Evan proposed
that 25% of their network of 17 theme parks be closed. Profits have been strong
from all theme parks and this proposal seems odd to Frank. Frank asks David
what he thinks and David says he completely supports Evan. Frank asks to see
the company accounts but is refused. He then wants to sell his shares to David
or Evan and is again refused. At the next two board meetings and at the
shareholder meetings Frank is not allowed to speak. Evan and David then pass a
special resolution removing Frank from the register of Shareholders and compulsorily
acquiring his shares at a fraction of what they are worth. Frank later
discovers that Evan was basing his business decisions on his star gazing and on
what he thought the stars were telling him. Frank also discovered that David
was being paid a secret allowance from Evan to support all of the proposals put
forward by Evan.

the directors of WaterSuperFun Pty. Ltd. whether they have breached their
directors duties under both the Corporations Act 2001 and general law?

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