Can anyone please solve this question by following IRAC(Issue, Rules, Application, Conclusion). Would really appreciate your effort. Thank you in advance.

1.You have been appointed as the accountant for a small proprietary limited company Midnight Soil Pty Ltd (The Soils). The Soils conducts tests to see if soil is contaminated and whether (or not) that land can be used for approved purposes (or not). The Soils has five directors. They have all agreed that at their next board meeting they would discuss paying a dividend of 22 cents per share. However, you have identified there is a potential cash flow issue due to the companys recent loss of a major contract. You have assessed that the company is able to cover this revenue loss in the short term because it has a positive net asset position carried over from the previous financial year. Your further opinion is that cash flow problems will arise during the next quarter and you have put this in writing to the Soils Board. Based on your advice, two directors call you before the next board meeting to ask if there is anything that can stop the proposed dividend if three of the five directors vote in favor of paying the dividend now.

Advise the two directors. Use relevant cases and legislation to support your answer.

2. Dilpreet is managing director of a profitable company Mohans Pty Ltd (Mohans) which specializes in buying and selling anti-aging cosmetics and shampoos for women. Dilpreet chats to her friend, Amander, who is not connected to the company. Amander asks Dilpreet whether Mohans would be interested in helping to market a new product that that she says prevents male hair loss. Dilpreet tells Amander that her company would not be interested in this product because it sells women's products only. However, she offers to help Amander and the two of them set up a separate company (AMANDER Pty Ltd). They become its only two directors and shareholders. (Dilpreet holds the majority of shares). This new company is virtually an overnight success. At a board meeting of Mohans six months later, Dilpreet proposes that Mohans enters into a long-term contract with AMANDER - to buy supplies of its product for re-sale. The board agrees and, as part of the contract, Dilpreet negotiates that she be paid a small commission on each sale because she drew the board's attention to this new product opportunity. Mohans makes good profit from selling this new product line. Mohans directors now learns that Dilpreet is the majority member in AMANDER and they are annoyed they Dilpreet never told them about her connection to AMANDER.

Has Dilpreet breached any directors duties to Mohans? What defence arguments could she use? Use relevant cases and legislation to support your answer.

3.Rajiv is director of a company which has had two years of poor trading and is now unable to pay its debts when they fall due. Rajiv seeks your advice on the options available in the circumstances. He is concerned the company may be insolvent but is hopeful that the business could be profitable again if creditors allow a little time to make some changes.

A. Explain the options available to Rajivs company if the directors are concerned the company may be at risk of insolvent trading.

B. What sort of risk could Rajiv face if he borrows more money to help the company but then cant pay it back? Your answers must refer the relevant sections of the Corporations Act 2001 (Cth) and case law