2. Luis is a director of Papadapolis Ltd. Papadapolis Ltd sells toy dolls called 'Cute Kids'. The dolls are not selling well and the company is running low on working capital. To remedy the situation, Luis obtains an unsecured loan of $1 million. Luis thinks that the company will be able to pay the loan back because it is nearing the end of the year and his projections suggest he will sell lots of dolls around Christmas. Unfortunately, things don't go as expected and Luis doesn't sell as many dolls as he anticipated. It is now January a slow period for selling dolls. Luis is aware of s 588G of the Corporations Act 2001 (Cth) and doesn't want to breach it. He hires Shoddey & Dodgy Accountants to prepare a solvency report. The report shows that Papadapolis Ltd has net assets and, based on projections, can pay its debts when they fall due. Based on the report, Luis has the company enter into a contract to purchase $10 million worth of material for doll manufacturing. a) It transpires that Shoddey & Dodgy's report was incorrect, and Papadapolis Ltd is placed into liquidation. Does Luis have any liability under s 588G of the Corporations Act? b) How would your answer be different if Luis was ill when the contract was entered into, and instead his fellow directors made the decision to move forward with the contract? c) How would your answer be different if Luis did not seek a solvency report, but entered into the contract because he thought that the company was performing well? d) What if his fellow directors were eager to enter into the contract but Luis was against it, even after reading the solvency report? How would you have advised Luis?