Based on Australian Law

Raygon Ltd is listed on the Australian Stock Exchange. It produces agricultural

products such as fertilisers and insecticides. It has been at the cutting edge of technology for producing these products and has invested a considerable amount of resources into research and development.

One of the technologies which the company has been working on is to convert by-products from growing mushrooms into a high quality fertiliser. The company has achieved some significant results from the testing this technology.

The company expects to be able to start manufacturing and selling this product under the label, "Slushy Mushies", early in 2019. Interested customers have already started pre-ordering the product. Based on these orders the company expects that this will increase profitability by about $50 million in 2018-19.

Raygon Ltd will need to raise capital to further develop some of these technologies. It is proposing to raise capital by selling shares.

The directors have tried to be as prudent as possible in relation to this capital raising but the disclosure document includes an error. It states that Raygon Ltd's made a net profit of $5million in 2017-18. This is incorrect. The company actually made a net loss of $5 million in 2017-18.

Please discuss any liabilities that may arise in this situation.