Aline is a shareholder of

Aline is a shareholder of Farnsworth Ltd. She is unhappy with the recent behavior of the board of directors. She believes the Farnsworth Ltd directors are breaching their duty to act with care, skill

and diligence and their duty to avoid conflicts of interest. These breaches are costing Farnsworth Ltd

significant financial losses.

Aline knows that the directors would never resolve to take action against themselves for breach of

their director’s duties. She also knows that if the directors are not stopped from breaching their

duties then Farnsworth Ltd will continue to suffer significant financial losses.

Aline wants to sue the directors of Farnsworth Ltd.

Advise Aline if she can sue the directors of Farnsworth Ltd for breaching their directors’ duties.

Use the IRAC method to structure your answer.