Short Answer Question 9: Andrew, Brian, Colin, Diana and Elizabeth were the directors of Fashion First Pty. Ltd. Fashion First Pty. Ltd. is a company engaged in the business of importing and supplying fashion accessories to the local market. Andrew is also the Managing Director. The company has decided that, as the market was becoming more competitive, it needed to expand its business. It felt that with increased volumes of sales it would be able to lower its prices and become more competitive. In order to do so it obtained a $4 million loan from ABC Bank Led. $3 million was used to buy more inventory and $1 million was used to buy a large new warehouse and showroom from development Interests Pty. Ltd. Colin was not at the meeting where these decisions were made, as he was in hospital recovering from a serious accident. Elizabeth had not attended the meeting (as was her usual custom) but had signed the requisite documentation agreeing to the expansion of the business and the obtaining of the loan. Diana had attended the meeting but said she did not know if she agreed with the proposal and abstained from voting. Andrew and Brian both voted to go ahead with the expansion of the business and the getting of the loan. About this time Brian established contact with George who was setting up a new business as a retailer of fashion accessories. George was looking for reliable supplies, but said he would not deal with Fashion First, as he did not like Andrew. Not wishing to miss out on such a lucrative business opportunity, Brian arranged to set up his own business as a fashion accessory wholesaler and a contract was entered into between George and Brian for the supply of fashion accessories. Six months later Brian resigned as a director of Fashion First. At the same time it was clear that Fashion First has over-extended itself, was insolvent and could not pay the interest on its loans