The board of The BBC Ltd, a large coffee bean company listed on the ASX, comprised of 3 executive directors and 1 non-executive director:

Adam is the managing director of BBC Limited.He has been on the board of BBC Ltd for several years.

Billy is a chartered accountant and is the Chief Financial Officer at BBC Ltd and is an executive director of BBC Limited.

Chan is an executive director of the board who has substantial experience in the banana cake industry.

Dev is a non-executive director who barely attends board meetings and is a hairdresser.

The board of BBC Ltd has recently entered into a number of investments including a new kitchen in which to create the cake, and other investments which have been losing large sums of money. At a board meeting in March 2018, the board considered the company's financial statements relating to the loss making investments.The financial statements were negligently prepared and showed a profit instead of a loss.These financial statements were prepared by Billy.

During the board meeting, Billy failed to tell the director's about the loss and Chan failed to ask any questions about the financial statements, and Dev (as per usual) was absent from the meeting.Due to time constraints, Adam failed to read the financial statements, believing that Billy would discuss the statements with him if there were any important matters that required his attention.

The board of directors do not identify the mistake and authorize further investment in the loss making business ventures.By May 2018, BBC Ltd is insolvent.

Question:

Discuss any liability of the directors of BBC Ltd in relation to those events.What are the consequences, if any of a breach of theCorporations Act?Refer to relevant legislative provisions and case law in your answer.