Problem
AI Solutions Pty Ltd ("AI") owns 50% of the shares of Chat TPG ("Chat TPG") Pty Ltd. Last year, AI was contacted by Microsoft Pty Ltd ("Microsoft"), which owns the other 50% of AI. Microsoft wanted to invest a large sum of money in Chat TPG, to allow it to research and develop a potentially valuable software application. The directors of AI at the time hired a team of consultants, which included a software applications expert, and instructed them to research the technical aspects of the proposed application and future possibilities involving the technology.
The team of consultants worked for three months researching for and writing the report. The report they presented to AI's directors showed that the proposed investment in the software application could very likely prove successful. Warren Gates is one of AI's directors. He holds a Masters of Computer Programming degree from a well-known university. Warren's fellow directors asked him about the consultants' positive projections. Warren told them that the report is accurate. In reality though, some of the information in the report was not well-researched and supported by up to date data. As a result, when AI's directors rely on the report and invest the company's money in the new software application, the investment was not profitable as the consultants predicted, and led to a significant loss for AI Solutions Pty Ltd.
Task
Citing specific common law and Corporations Act on directors' duties, critically analyze and discuss whether Warren Gates, as a director of AI Solutions Pty Ltd, has breached his duty of care.