How will they pay back the short term loan/s???With more...

How will they pay back the short term loan/s???

With more loans???

They can't raise capital. They got no income. How far could $28k go???

Ongoing costs such as these will have to be met:

- fees of directors ( esp Non Executive Directors),

- salary of office staff including secretary,

- monthly rental,

- legal fees to defend against ASIC and Class Action,

- end of financial year accounting services and tax lodgement,

- insurance to cover Directors,

- not to mention the huge accumulated interest charges at 5% per month.

Anyone and All of the above costs will exceed $28k for a quarter!!!

Non-Executive Directors and Executive Directors will be "Cognizant" of their duties as Director of a public company!!!

The Laws on Insolvent Trading is: Directors could become PERSONALLY LIABLE for NEW DEBTS - such as interest charges, class action and ASIC legal actions, etc etc etc. Class Action and ASIC legal actions will weigh heavily IMHO.

End of Financial year is coming.

The Directors will have to meet to decide on the status of the company.