Webs limited is a Sydney based webcast company its main business is broadcasting of protected sound recordings and music videos online

. In early March this year the board of Webs resolved to expand the companies business into streaming of films on television series they saw potential surge in demand for this content as the COVID-19 crisis had started to keep people around the world at home and in need of entertainment

to raise funds for this expansion come up there bliss issued a prospectus in which it offered ordinary shares to the public that prospector stated that the web is intended to negotiate streaming rights for movies and TV series with a number of major content providers , including fox and Warner Bros , and if successful , a substantial rice in the earnings could be expected from this of business the prospectus has stated that there was no chance that the web bliss would be unsuccessful In its negotiations with these providers

the prospectus included a report from David Hicks webs auditor the report confirmed that the web links income and profit forecast were fair and reasonable based on the information provided by its directors. Over 2,000,000 shares were issued pursuant to the prospectus offer web bless negotiations for streaming rights with several major movie and TV shows content providers including fox and the Warner Bros were however unsuccessful as the company's directors has had underestimated the cost involved for gaining such rights from them. Shares in webs per plummeted in value, and many investors who acquired shares by relying upon its prospectus lost their money

Advise the directors of webs limited and David Hicks on their potential liabilities for the above statements in the prospectus under chapter 60 of the Corporations Act. Is your answer you should also consider whether there are any defences available to the directors and the David Hicks.