Answer BOTH parts Copycat Ltd is a company that sells unauthorised sporting merchandise. The company made a large profit selling replica Lions shirts during the recent Lions rugby tour. At a board meeting on 15 September 2017, it is agreed that the company will pay out a dividend totalling $100,000.00, to be divided evenly amongst its four shareholders (each of whom own 25% of the company's shares). The board views a nancial report from the company accountant and is satisfied that the company can afford to pay this dividend. Each director signs a certificate to this effect. The financial report shows that: o On 15 September 2017 the company had assets of $250,000.00. . The only debt is a $100,000.00 bank loan. . There are operating costs of $10,000.00 per month (rent, salaries and equipment), but there is a guaranteed income of $15,000.00 per month from supply contracts. On 20 September 2017 David, one of the directors, receives a phone call from the company's lawyer, informing him that Copycat Ltd has been sued for $1 million by the official Lions merchandise supplier for selling unauthorised product. The lawyer rates Copycat Ltd's chances of losing the case and having to pay the full amount claimed of $1 million, at 10%. The dividend is paid on 22 September 2017, but subsequently the company loses the case brought by the Lions merchandise supplier. The company goes into liquidation when it is unable to pay damages of $800,000.00 ordered by the court. The company, through the liquidator, seeks your advice on whether: (a) The distribution should have been paid. (15 Marks) (b) The company can recover the money and, if so, from whom