Question 4 [7 marks] Chris Crisp was a director of \"Pies to Eat\

Question 4 [7 marks] Chris Crisp was a director of "Pies to Eat", a manufacturer and distributor of over 20 different types of pies. The other director was his wife, Caroline Crisp. Penny had very little to do with the day-to day running of the business. The General Manager was Harry O'Brien, who was not a director but had a say on most of the operating decisions of the business. Business had been severely affected by the Covid lockdowns and the business was short on cash to meet commitments from an expansion in 2019. Chris approached a friend, Wei Wang, to provide funding of $400,000, secured against the assets of the company. The security was registered on 15 August 2022. A major customer, Mac Foods, were often late with their payments. The General Manager was concerned and approached Chris who stated, "Don't worry we now have money in the bank!" Other customers were late paying their accounts, and suppliers demanded past accounts be paid before supplying materials. A staff member approached Harry with a letter from the staff member's superannuation fund indicating that the employer contributions had not been made for over 6 months. Harry went to see Chris in his office, but he was playing golf. He noticed a document on Chris's desk with the words in bold print, Statutory Demand, dated 14 days prior. He read no further. As he left Chris's office, the phone rang. He answered because the phone number indicated it was Mac Foods. The call was from the liquidator of Mac Foods, Charlie Crust, who indicated that Mac Foods was in liquidation and the expected dividend was zero. Harry knew that Mac Foods owed Pies to Eat nearly $420,000. On 25 October 2022, the supplier who had issued the Statutory Demand, filed an application to wind up Pies to Eat due to insolvency. Required: Discuss all relevant insolvency legal issues. (Your response should include references to the Corporations Act 2001 (if applicable).