Question
Premium Plumbing Pty Ltd (Premium) required further capital forexpansion and borrowed $200,000 from Eastpac Bank Ltd (Eastpac).Several months later, an unpredictable misfortune occurred causingPremium to
Premium Plumbing Pty Ltd (Premium) required further capital forexpansion and borrowed $200,000 from Eastpac Bank Ltd (Eastpac).Several months later, an unpredictable misfortune occurred causingPremium to suffer a large loss. Premium immediately advised Eastpacand stopped trading. Premium is now unable to meet the repaymentsdue on its bank loan and it has few assets. Eastpac is consideringways to recover its money. Would Eastpac Bank Ltd be successful inenforcing its claim against any of the following:
(i) the directors; (ii) the shareholders; or (iii) the employeesof Premium Plumbing Pty Ltd? Discuss relevant sections and cases tosupport your argument.
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College Accounting A Practical Approach
Authors: Jeffrey Slater, Brian Zwicker
11th Canadian Edition
132564440, 978-0132564441
