0n 1 Iebruary 2013, the members or iaiiure Ltd passed a specrai resorution to wind up the company and appointed Dean as liquidator. No declaration of solvency was made. Dean then called and held a creditors' meeting the next day. At the creditors meeting, the creditors rejected Dean and appointed Tracey as liquidator. During her investigations Tracey discovered that on 1 June 2012, the board of directors of Failure sold a major item of equipment (a non-current asset) to a company called Hopeful Ltd. Immediately prior to the transfer on 1 June 2012, the company's accounts revealed current assets of $100,000 and accounts payable of $300,000. The accounts payable included a PAYG tax bill of $120,000 from the ATO which was due for payment on 30 March 2012. Further, all non-current assets were subject to fixed andior floating charges. The major item of equipment was secured against a loan provided by Jerry, a director of Failure. Jerry was owed $1 million by Failure