Semester 2,2021 BULAW2611 OI'QEHISBIIOHS Law i | caution a (10 marks) A court has ordered the appointment of liquidators to Farmilly Ltd based on the non- payment of a statutory demand. Ah Ling and Jorge Cabello are the appointed liquidators. The liquidators are concerned that two of the directors, Herb Smith (CEO) and Greda Pavlovic (CFO) have failed to exercise an appropriate degree of skill commensurate with their qualications and experience. The liquidators believe that the judgment of Middleton J in ASl'C v Heals-y & Ors [201 'I] FCA 717 will be particularty relevant in proving the alleged breach. The liquidators intend to initiate legal action in the name of the company. Required: Answer the following questions: (a) Which duty do the allegations of breach relate to and what is the source of that duty? (2 marks) Click or tap here to enter text. (b) What is the legal principle (test) that will be applied to the directors' conduct? (2 marks} Click or tap here to enter text. (c) What is the standard expected of Herb? (1 mark) Click or tap here to enter text. (d) What is the standard expected of Greda? (1 mark) Click or tap here to enter text. (e) if the judgment in 14570 v Heaieyis relevant case law. what do the allegations against Herb and Greda relate to? (3 marks) Click or tap here to enter text. (0 What are the likely consequences if the court nds the directors have breached the duty? (1 mark)