Mrs and Mr Foster are the only shareholders and directors in XYZ Pty Ltd. Throughout the past financial year, both Mr and Mrs Foster noticed a steady decline in sales for the company's two businesses. In fact, Mrs Foster - who manages the company's finances, became so concerned that the company might be nearing insolvency that she stopped keeping financial records for the company around 1 August 2020. Later investigations reveal that the company became insolvent on 1 October 2020.

Required: Analyse the scenario and discuss possible breaches of the Corporations Act.