Power Fitness Ltd (Power Fitness) is an Australian registered company that sells gym equipment. Power Fitness' directors are Connie (managing director), Cordelia and Coarad. Doe to COVID-19 restrictioas in many parts of Australia, there has been a sharp decline in demand for gym equipment nationwide since early mid 2021. The directors were worried about Power Fitness's ability to financially snive this downturn, and they therefore decided that Power Fitness should diversify and sell on-road bicycles. The July 2022 board meeting of Power Fitness included the following agenda items for the directors' consideration: 1: That Power Fitness should purchase 500 racing bicycles from wholesaler Speedster Pty Ltd (Speedster). Speedster's only directors and shareholders are Angus and Abbie, Cordelia's parcats-in law. Anges and Abbie have indicated to Cordelia that Speedster will sell the bicycles to Power Fitness at a very low price. 2: That Power Fitness should purchase 200 e-bikes from E-Bikers. E-Bikers is a sole trader business owned and operated by Peter Peddler. Peter is a long-term friend of Coarad's, and the two have bee playing golf together for the past 20 years. At the July 2022 board meeting. Power Fitness's directors voted in favour of both proposals and the contracts with Speedster and E-Bikers were signed in early August. The bicycles were deivered to Poser Fitness in late August, but when payment was due in early September, Power Fitness was unable to pay the suppliers and a liquidator was appointed in early October. With reference to the above set of facts, and using the four-steps-process, discuss both parts (part a and part b) below. Ensure that you discuss and apply relevant sectioas of the Corporations Act 2001 (CH) and cases in detail and in your own words. (a) Discuss the key duties (at least one) that the directors of Power Fitness are likely to have breached when entering into the contracts with Speedster and E- Bikers. Ifia roar view, ther have breached their duties, discuss the possible defences that can be used by the directors (15 marks) (b) Discuss the procedures that must be followed by a directors) of Power Fitness Ltd in the current situation considering the involvement of their family and frieeds.

australan tax law