Jacob Farook's company, JF Solar Panels Pty Ltd, has been running a solar panel business for many years. Jacob is the sole director and the sole shareholder. In July 2016, Jacob ordered glass panels to the value of $1 million from Glass Makers Pty Ltd, a glass wholesaler, as he had done on many occasions. At around the time that the order was placed, the company was experiencing serious cash-flow problems, and was unable to pay its debts. Jacob, who was immersed in the research and development side of the business, did not pay sufficient attention to the company's accounts, and only realised that it was in serious trouble a month later.

When the glass was delivered in September, the company could not pay the account and it has remained unpaid. The manufacturer is now suing both the company and Jacob. Advise Jacob of the extent (if any) of his personal liability. (8 marks)