Kelly Building Pty Ltd is a registered builder. Its managing director, John controls the company's business activities. John's wife, Marsha, is the other director but she does not concern herself with the day-to-day management of Kelly Building Pty Ltd's business. She is aware, however, that

Kelly Building Pty Ltd has severe financial problems. In June John, on Kelly Building Pty Ltd's behalf, purchased $150,000 worth of building supplies on 30-day credit terms from Collins Manufacturing Ltd. Despite numerous demands the $150,000 has not been paid. In October Collins Manufacturing Ltd successfully applied to wind up Kelly Building Pty Ltd.

Explain whether the liquidator of Kelly Building Pty Ltd can make John and Marsha personally liable for their company's unpaid debts. Can John and Marsha rely on any of the s 588H defences?

This is question about corporation law!