Binge Pty Ltd has borrowed a large sum of money from Moneybags Bank Ltd. The bank has obtained personal guarantees from the company’s directors, George and Vivien. The company is unable to repay the loan. The bank is of the opinion that the company is no longer a separate legal entity and that Vivien and George now need to repay the loan. Do you agree with the bank?
Answer your question in the space provided and it should not exceed 10-12 lines.
It is recommended that you spend approximately 12 minutes to answer this question.
Refer to the relevant sections of the Corporations Act 2001 (Cth) where possible and also quote relevant cases where possible. You are required to briefly discuss the law and apply the law to the facts.