Helios Pty Ltd, a floristry company engaged in genetically modifying floral species, has recently encountered cash-flow problems. It is a small proprietary company with 25 employees and 5 directors. The directors are also employed by the company as the scientists who work on new flower breeds. Up until recently the business has been quite profitable, with several permutations of flower being generated each year resulting in more than enough funds from the sale of the associated intellectual property rights. Whilst the directors do not want to see the company go under, as this will also result in them being out of work, they have noticed that unless they can secure some finance over the next few months they may be unable to pay their fixed costs, including rent on the company's primary research facility and expensive equipment. Henry, considered by all to be the leading director of the company, approaches you for legal advice regarding what the company can do to generate funds. Being a scientist by profession, he does not want to waste his time or expertise on corporate affairs. He has already asked the company's bank for a roll-over facility to be attached to its running account and the bank has declined. The bank has also warned Henry that if the company does in fact run out of funds, he may be personally liable for the company's debts. Henry's first and foremost concern is his own financial well-being and he does not want to have to pay the company's debts out of his own pockets. The company is his pride and joy, having founded the entity more than 10 years ago, and he has no intention of shutting down his research if he can obtain some short-term funds. Advise Henry of his business prospects as well as the associated insolvency risks.

State the law and show how it applies to him and his company.That would constitute your advising Henry.