First, the Act's Section 180 imposes a need to exercise due care and diligence. As required by Section 180(1) of the Corporation Act, directors and other officers of a business must exercise due care and attention in carrying out their responsibilities as a reasonable director. In particular, a director has a duty to oversee the operation of the firm and make sure it is in the best possible shape. The case serves to remind the directors of their obligations and liabilities while in office. A reasonably cautious and vigilant director in this situation would not have permitted HIHC to loan PEE the sum of ten million dollars. Adler also neglected to make sure that HIHC was protected by safeguards. No other board member requested clearance, and the HIH investment committee was also fully uninformed of the choice. There was no issuance of any paperwork or collateral for the loans. Adler has broken several Act provisions while serving as the director. Such critical and important obligations that ought to have been carried out with the highest care and diligence were broken.

Second, in accordance with Section 181 of the Act, the directors must act impartially and in the best interests of the firm when making decisions. Adler took choices that benefited his newly founded company while also serving his own interests (Bevans, 2007). Section 181 was broken by the directors. Adler failed to disclose the intended use of the money in a proper manner. On the one hand, Adler was only concerned with safeguarding his HIH shareholding, which was against the company's interests. However, he also broke his obligation to PEE by acquiring the three unlisted technological investments and the unsecured debts.

Thirdly, the purpose of Section 182 of the Act is to prevent incorrect positional use. According to Section 182(1) of the Corporation Act, no officer, director, or employee of any organisation may use their position in an improper manner to benefit themselves, others, or the business as a whole. It is an obligation to not use the position for personal gain. As Adler subsidised the cost of shares for his benefit, this Section was also broken. Williams also abused his power by approving the $10 million payment without first consulting the proper channels. (2003) (EI & Vault).

Finally, the purpose of Section 183 of the Act is to prevent improper information use. According to Section 183 of the Corporation Act, no member of an organisation may use information obtained inadvertently to harm the organisation or gain an unfair benefit for themselves or others. While Adler violated the Section by using the data for his and his business's gain. He made sure that the money was invested by HIH in a way that would give him a significant advantage and substantial returns. The directors broke the law by engaging in illegal behaviour. They were expected to conduct themselves in a manner that complies with the law and guarantees the organization's efficient operation.