The directors of Caragabal Pty Ltd, a company that builds and sells campervans, are struggling to keep up with company expenses. They fear the company may soon become insolvent.

To secure funds to meet next months expenses they arrange for Caragabal to enter into a loan agreement.

The new loan tips Caragabal Pty Ltd into insolvency.

Advise the directors of Caragabal Pty Ltd if they have breached their duty to prevent insolvent trading

see s.588G Corporations ,

see s.180 Corporations Act