1)David Beakham was a majority shareholder and director of liverpool Pte Ltd (liverpool), a football team incorporated as a company. He is getting old and he wants to retire from the company. However, he is concerned that his wife and kids will not be able to maintain their luxurious lifestyle if he leaves the company. To address this problem, David and the two other directors of liverpool passed a board resolution which provides that after David's retirement, his family will get a monthly allowance of $10,000 from liverpool. Confident that his family's needs will be provided for, David retired from liverpool and he now wants to claim the monthly allowance for his family. Subsequently, liverpool went into insolvent liquidation and it does not have sufficient funds to pay all of its creditors. Steve Gerrard, an office manager employed by the company, has not been paid his salary for last month amounting to $7,500. Manchester City United Pte Ltd (Manchester) supplied jerseys to the liverpool team. Unfortunately, liverpool has failed to pay Manchester for the jerseys amounting to $10,000. This debt is not secured by any charge. To make traveling for its players convenient during overseas matches, liverpool purchased a private jet from Everton Pte Ltd (Everton) worth $25 million. The private jet remains unpaid and Everton is claiming payment for this debt which is secured by a fixed charge created over liverpool's Anfield Football Stadium.

Required:

(a) Advise whether or not liverpool is required to pay the monthly allowance to David Beakham's family. (15 marks)

(b) briefly Discuss the order of priority of Steve Gerard, Manchester, and Everton in the payment of liverpool's debts: (7 marks)