1. ABC Building Pty Ltd is registered builder. Its managing director, John, controls the company business activities. Johns wife, Marsha, is the other director but she does not concern herself with the day-to-day management of ABC Building Pty Ltd.s business. She is aware, however, that ABC Building Pty Ltd has severe financial problems. In June, John, on ABC Building Pty Ltd.s behalf, purchased $150,000 worth of building supplies on 30 credit term from Collins Manufacturing Ltd. Despite numerous demands $150,000 has not been paid. In October, Collins Manufacturing Ltd successfully applied to wind up ABC Building Pty Ltd.

Explain whether the liquidator of ABC Building Pty Ltd can make John and Marsha personally liable for their companys unpaid debts. Can John and Marsha rely on any of the S588H defences?