James Morgan is an entrepreneur who established an IT software business in cloud computing named Arista Networks Ltd (Arista Networks) in West Perth, Western Australia. Arista Networks daily management was left to James Morgan as the managing director (MD). There are also two other non-executive directors, Melissa and Charles, and their role is mainly related to assisting management and reviewing policies and strategies for business development. Page 1 of 3 Semester 1, 2023 BLAW2006 Company Law for Business In July 2022, the auditor of Artista Network Ltd submitted a financial report to James Morgan that the company will likely suffer a large financial loss for the year. James Morgan was not happy about the report and the explanation provided. He decided not to inform the board of directors about the financial position of the company as he believed the company could still be profitable in the next 6 months. The board later learned that James Morgan had recently bought a luxury boat from Luxury Boat Hire Pty Ltd for an amount of $300,000 to be used by senior managers and elite clients of Artista Network. The board was not informed about such a purchase and found out only after Luxury Boat Hire Pty Ltd contacted the secretary of the company for the payment of their invoice. In the last 3-6 months, Artista Network Ltd has experienced financial difficulties and was not able to pay its outstanding debts. The creditors are demanding to be paid immediately or sue and place the company into compulsory liquidation. Required Advise ASIC whether the directors have breached the duty to prevent insolvent trading and any available remedies that can be taken against them in accordance with the Corporations Act. Your answer should also consider if any of the directors can rely on any available defenses. NOTE: You are required to use the 4-Steps Process to answer this question.