Cobra plc is the holding company of a large group of companies, operating throughout the UK manufacturing children's toys. Viper Ltd is a 100% owned subsidiary of Cobra plc. Cobra plc organises the employer liability insurance for the group. One of Viper Ltd's employees has recently suffered an accident at work due to a fault on one of the machines. The Production Director of Viper Ltd did not read the insurance policy sent to him by Cobra plc, as unfortunately Viper Ltd had not been included in the insurance renewal and as a result, has no employers liability insurance to cover for any accidents to employees. In addition, Viper Ltd is having cashflow difculties. Snake Ltd one of Viper's suppliers is owed 30000. Snake has sent two letters demanding payment but the Directors at Viper Ltd have ignored both letters. Snake Ltd has now written to Cobra plc holding them responsible for Viper's debt. Due to a general economic downturn, Viper Ltd's assets have fallen in 1Value. Money Bank plc holds a xed charge over Viper Ltd's factory for 200.000. The current market value of the factory is only 150,000. The factory is Viper Ltd's main asset. Explain the liability of Viper Ltd's production director and any action which can be taken. {7 marks} b} Advise, with reference to company law, whether Snake Ltd will be able to take any action against Cobra pic for recovery of the debts and the options it has available to recover the money owed. (18 marks}