A) Fruit Ices Ltd limited is struggling financially. Peter and Betty are two directors of Fruit Ices Ltd. they have had several emergency meeting regarding the current financial situation of the company. Last week Peter announced that he is tackling some health issues and has decided to take a leave of absence in order to attend a health retreat. In his absence a Betty decides it would be a good idea to bring in a restructuring specialist and goes ahead with this. Betty also decides that the company needs to try and expand into other frozen foods. She orders supplies for this, but the company is unable to pay for these. Finally Betty decides that further advertising is a good idea and hires a marketing expert to do this. The company is not able to pay for this either.

Hans is the CFO of Ltd. He is in charge of managing the companys day to day financial affairs. Although he saw that the financial outlook of the company did not look good he was too distracted by his pet poodle Brittlesnap who just has eight puppies and hasnt really been attending work or paying to much attention lately. Peter, who was away insists he new little about the companys financial troubles and Buttercup never read the financial report.

Please advise on Peter, Hans and Bettys liability. (10 marks)