OzFarm Pty. Ltd. would also like to raise finance to fund the purchase of a block of farm land to expand its business. It is proposing to borrow $2 million from Big Bank using the building as the security for the loan. The two directors, Mitch and Match are in oblivion to the fact that the company is experiencing a downturn in demand for organic produce due to the increasing unemployment as a result of the economic recession in the COVID crisis. OzFarm already had existing debts to the tune of $300,000 owing to a large supplier, Pallet Pack. In order to reduce this debt, the directors are using the line of credit worth $50,000 (similar to using the credit card). A few months down the track, it is becoming clear to the directors that they would be running out of cash shortly, given the demand for their products have decreased significantly.

Advise whether the directors have breached any of their required directors duties and if so whether they can rely on any defence?