Mermaid Pty Ltd is the trustee of a discretionary trust. Under the trust deed, the trustee is empowered to invest trust monies on first mortgage security only. There are three directors in Mermaid Pty Ltd, namely John, Paul and George. The effective running of the company is left to John and Paul while George takes little or no part. The company's assets are worth $20,000. The beneficiaries are Susan, Marie and Margaret. While acting for the trust and on behalf of Mermaid Pty Ltd, John and Paul decide to invest some of the trust monies on the share market. George was not consulted about this matter. This investment fares well for a time but then, in 2009, the financial crisis leaves the trust shares' portfolio in tatters. The trust owes Jack, a security dealer, $50,000 for shares purchased. The trust has only $5000 in assets. The beneficiaries of the trust are well off and they have no involvement in the trust management.

1. Advise Jack on the liability of the different parties.
2. Would the answer be different if the trust was a fixed trust.

May you help respond to these questions using ILAC / IRAC method? (Thank you)