Kelly is the only director in a company called Australia Beach. The company is doing well financially, and only has one bank loan that they need to repay. The bank becomes aware that Kelly has used the money from the bank loan to pay for her own personal expenses, including furniture for her beach house.

There are $3$ shareholders in the company $$ Kelly, Duncan and Gail Kelly owns $60\%$ of the shares, and Duncan and Gail each own $20\%$ of the shares. Duncan and Gail knew that Kelly was going to use the bank loan in the company$$s name for her own expenses.

The bank asks you whether they can ask the court to lift the corporate veil in this case, to try and get their load repaid to them. You must refer to case law in your answer. $(6$ marks$)$

How would your answer differ if the bank loan money was used to purchase equipment for the offices of Australia Beach? $(3$ marks$)$