Bill is a director of Exotic Ltd, a company without a constitution. Exotic Ltd provides low- cost holidays, operating a resort on a Pacific island. Bill lives in Perth and findsit difficult to attend monthly directors'meetings on the island. He has missed the last five meetings and also cannot attend the next one, as he has a birthday party in Perth.

Bill believes that it will not matter if he does not attend the meeting because, after missing so many,he is not up to date with the company's financial position.Bill is unaware that the company has been having financial difficulties for six months and is struggling to pay creditors.

At the board meeting, the other directors decide to change the style of the renovations to a more luxurious standard so that the resort will attract wealthy high spending tourists. Financial plans provided by the company accountant to the directors indicate that this should enable the company to trade out of its financial difficulties. A decision is made to obtain a large loan from Shark Finance Pty Ltd to pay for the more expensive luxury renovations.

A few months after the renovations are completed, an unexpected world-wide stock market collapse occurs and with budgetary concerns, consumers are not spending. The only airline servicing the Pacific Island'sceases operations due to lack of bookings. Shortly thereafter, Exotic Ltd fails to pay interest due on the Shark Finance Pty Ltd loan and a liquidator is appointed to the company.

REQUIRED:Has Bill or any of the other directors breached any duties and could they be personally liable to the creditors for such breaches? Discuss any relevant defences that Bill or the other directors might raise.

Answer in IRAC FORMAT