Fusion Fusion Pty Ltd is the owner of the famous chain of restaurants, 'Fusion2'. William and Xena 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 Xena was unwell at the time, so he decided to not tell her about it. Things got worse as days passed, and Fusion Fusion Pty Ltd could not pay for its stock or salaries of its employees. William decides that he must act, so he applies for a loan to buy in handmade dumplings to add to the menu to improve business. Fusion Fusion Pty Ltd borrows $10,000 from 'The Bank' to purchase handmade dumplings. When Xena returns to work, she checks the accounts and recent reports and realises that Fusion2 is in serious financial trouble.Without Williams knowledge, Xiali immediately obtains the expertise of a financial advisor to prepare a restructuring plan. Shortly after, the company went into liquidation due to owing large sums of money to its creditors.

Advise William and Xena of their liability to Fusion Fusion Pty Ltd and any defences under the Corporations Act 2001 (Cth). Do not discuss S.180-184. Please use statutory provisions to support your answer.