a What is b What possible defence(s) might CASE 2.20 Megadon Lid is a Melbourne-based company contemplating the acquisition of all the shares in Nut Ply Lid, a small proprietary company registered in Perth, having learned of the availability of company in 20X5 from a firm of accountants, Dell Dingle & Pritchard, that audits both companies. Before deciding to sign the purchase contract, Megadon requests and receives audited financial statements NuWave for 20X6 from Dell Dingle & Pritchard. The purchase contract contains the clause: The purchaser shall have the right to rescind the purchase of the shares if the audited financial statements for NuWave Pty Ltd for the financial year ended 30 June 20X6 show a material adverse change in the financial condition of the company. The audited statements provided to Megadon don't show any such material adverse change. Following the takeover by Megadon, it is discovered that the audited statements are incorrect, and the financial condition of NuWave is considerably less attractive than previously believed. Megadon stands to lose its entire investment in NuWave as a result of this error, and so plans to take action against Dell Dingle & Pritchard REQUIRED a Discuss the different bases for legal action that might be available to Megadon. U How might the auditors defend any of the possible actions you have identified in (a) above? What Corporations Act 2001 provisions, if any, would be applicable to the circumstances of this case? What other statutory provisions may apply in this case? What is the role of privity of contract in this case? damages? Explain. Assuming that the auditors are proven to have been negligent, will the injured party be able to recover