Question 3 Wilcannia Pty Ltd, designs, manufactures and markets unique furniture made from Australian native timbers. The company is owned and controlled by members of the Wilcan and Donoghue families. The company was profitable for many years, but profitability started declining in 2016. The company currently employs 38 people including 16 members of the Wilcan and Donoghue families. The current board of directors consists of: Tina Wilcan as managing director. Tina holds a business degree from Federation University but her only practical experience has been in working for Wilcannia. Troy Wilcan as financial director. Troy is a CPA who worked for five years for a listed Australian company before joining Wilcannia. Trevor Donoghue as marketing director. Trevor used to work in Sydney for a well- known advertising agency. He does not work full-time for Wilcannia as he continues to run a marketing consultancy. Tessa Donoghue as operations manager. Tessa is responsible for the manufacture of the product. In October 2019, the company's financial problems are discussed at a board meeting. Troy informs the board that the company is not paying its creditors as there is insufficient cash flow. The company owes $5m to its main creditor, CountryBank, which holds security over the company's assets, and a further $872,000 to unsecured creditors. Troy recommends that the board appoint voluntary administrators. Tina, Trevor and Tessa are not happy with this suggestion because it means that the family will lose control of the company and employees will lose their jobs. Instead, Trevor implements a campaign to sell off existing stock and Tina reviews all company expenditure to find cost savings. Shortly after the board meeting, Tessa resigns. Although the sale and cost-saving initiatives are moderately successful, by February 2020, the bank is threatening to appoint receivers. The Wilcannia board appoint voluntary administrators. The administrators sell the business, and the company proceeds to liquidation in May 2020