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Director A of a proprietary company took a $200m loan without securing other directors approval. Then, suddenly because of financial crisis, every single one of
Director A of a proprietary company took a $200m loan without securing other directors approval. Then, suddenly because of financial crisis, every single one of company's high- risk investments tanks, reducing the business value. Furthermore, the company couldn't pay the rent, salaries, and loan interest. Who if anyone is likely to be held liable and why (what legal theories)? (use Corporations Act as a reference)
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