Dian Dian Pty Ltd is the owner of a famous chain of restaurants, 'Dian Dian'. Willis and Xiali are the directors of Dian Dian Pty Ltd. Willis is also the CEO of the company and oversees the company's day-to-day operations. In March 2021, the company accountants issued a report indicating that the business was running at a loss for the last six months. Willis read the report, but Xiali was unwell at the time, so he decided to not tell her about it. Things got worse as days passed, and Dian Dian Pty Ltd could not pay for its stock or salaries of its employees. Willis decides that he must act, so he applies for a loan to buy handmade dumplings to add to the menu to improve business. Dian Dian Pty Ltd borrows $10,000 from Eastpac Bank to purchase handmade dumplings. When Xiali returns to work, she checks the accounts and recent reports and realises that Dian Dian is in severe financial trouble.Without Willis's knowledge, Xiali immediately obtains the expertise of a financial advisor to establish a restructuring plan. Shortly after, the company went into liquidation due to owing large sums of money to its creditors.

Advise Willis and Xiali of their liability to Dian Dian Pty Ltd and any defences under the Corporations Act 2001 (Cth).

Would you mind using statutory provisions to support your answer?