' (20 Marks) d (Webbliss) is a Sydney-based webcast company. Its main business is ng of protected sound recordings and music videos online. _y March this year, the board of Webbiiss resolved to expand the company's ess into streaming of lms and television series. They saw a potential surge in and for this content as the Covid19 crisis had started to keep people around the ., 'orld at home and in need of entertainment. To raise funds for this expansion, Webbiiss issued a prospectus in which it offered ordinary shares to the public. The prospectus stated that Webbiiss intended to negotiate streaming rights for movies and TV series with a number of major content providers, including Fox and Warner Bros, and if successful, a substantial rise in earnings could be expected from this new line of business. The prospectus also stated that there was 'no chance' that Webbiiss would be unsuccessful in its negotiations with these providers. The prospectus included a report from David Hicks, Webbliss' auditor. The report conrmed that Webbiiss' income and prot forecasts were fair and reasonable based on information provided by its directors. Over two million shares were issued pursuant to the prospectus offer. Webbiiss' negotiations for streaming rights with several major movie and TV show content providers, including Fox and Warner Bros, were, however, unsuccessful as the company directors had underestimated the costs involved for gaining such rights , from them. Shares in Webbiiss plummeted in value, and many investors who acquired $230\" shares by relying upon its prospectus lost their money. c . 5 Advise the directors of Webbliss Ltd and David Hicks on their potential liabilities gig for the above statements in the prospectus under Chapter SD of the '93? Corporations Act. In your answer, you should also consider whether there are 7' ' any defences available to the directors and David Hicks. d' $531