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usweis/luca-director-cinelli-Itd-cinelli-Itd-sells-pet-toys-called-amuse--toys-selling we... egg Study Textbook Solutions Expert Q&A Study Pack Sign in business operations management / operations management questions and answers / Luca Is A Director of Cinelli Ltd. C. Question: Luca Is A Director Of Cinelli Ltd. Cinelli Ltd Sells Pet Toys Call... Luca is a director of Cinelli Ltd. Cinelli Ltd sells pet toys called 'Amuse. The toys are not selling well and the company is running low on working capital. To remedy the situation, Luca obtains an unsecured loan of $500,000. Luca thinks that the company will be able to pay the loan back because it is nearing the end of the year and his projections suggest he will sell lots of toys around Christmas. Unfortunately, things don't go as expected and Luca doesn't sell as many toys as he anticipated. It is now January - a slow period for selling pet toys, Luca is aware of s 588G of the Corporations Act 2001(Cth) and doesn't want to breach it. He hires Winky & Dinky Accountants to prepare a solvency report. The report shows that Cinella Ltd has net assets and, based on projections, can pay its debts when they fall due. Based on the report, Luca has the company enter into a contract to purchase $5 million worth of material for toy manufacturing It transpires that Winky & Dinky's report was incorrect, and Cinelli Ltd is placed into liquidation. Does Luca have any liability under s 588G of the Corporations Act? Why/Why not? (DO NOT DISCUSS PENALTIES.) Please use case law and statute to support your answer. This problem has been solved! Expert Answer See the answer a reasons for no liability is No, Luca does not have an that Luca as director of view the full answer > ything brise 40 A & $ % O 9 7 8 6 3 4. 5 * O P. [ ything brise 40 A & $ % O 9 7 8 6 3 4. 5 * O P. [