GK Inc. is a manufacturing company which is experiencing serious financial problems. GK has a $1,500,000 loan with the TD Bank that was backed with a general security agreement on GK's assets. GK has been unable to make its last few monthly payments totalling $90,000 and the TD bank is worried and wants its money. GK also owes 4 months in back rent it has not paid totalling $48,000 to the landlord Real Properties Inc. There are also 40 GK employees, who are each owed $6,000 in unpaid wages from the past 2 months. Also the government is demanding unpaid CPP and HST payments totalling $33,000. This week the board of directors authorized a $50,000 dividend payment to the preferred shareholders and the cheques were mailed to them. Rick Liu is a dentist, and an outside director of GK and Rick is afraid if GK goes bankrupt he may be liable for some of GK's debts. The TD Bank has contacted a trustee in bankruptcy, but GK is hoping to stay in business. Outline the steps that will now occur if the trustee comes in and discuss the rights of GK to remain in business and the rights of all of the parties if a bankruptcy proceeds.

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AnalyzeFULLYthe legal issues and the rights and remedies of all the parties in this paragraph.