Kelly succeeded in changing the name to Kelly Shoes Ltd. The company set up a wholly-owned subsidiary called Acme Pty Ltd to make hats, with Kelly's friend Rachel and Monica as Acme's directors. Kelly seeks your advice on the liability of Peggy, Buddy, Rachel, Monica, Kelly Shoes Ltd and herself, in the event that Acme Pty Ltd is wound up with debts owing.There were no tort liability claims.