Can you help provide answers using the IRAC/ILAC method and also provide statutes from the Corporations Act 2001 to this problem-based question below:

QUESTION:

Alexi, Mark, Mary, Judith and Florence are directors of Do Pty Ltd. The company owns a block of vacant land in the city. The block of land has been on the market for some time without a buyer and it is finally decided that the land should be auctioned off. A reserve price of $280,000 was set by the board of directors but the price was not reached at the auction and the land was not sold.

Mark tells Alexi that he would like to buy the block of land for $200,000/- and Mark's offer is directly accepted by Alexi, who is also the managing director of the company. They matter does not go to the board for approval. Mary discovers what is happening and is not happy with the situation. She knows that Alexi and Mark are friends and she discovers that Alexi is getting a 10% commission on the sale of the land.

Alexi enters into another contract to supply certain material to New Wave Ltd. The contract is lucrative but the company will not be able to fulfil its legal obligations because it is having financial difficulties. Alexi believes that the company will soon be solvent again. Mark on the other hand is not involved in the management of the company and leaves everything to Alexi. Mary has been ill and been in and out of hospitals for the last year. On a regular basis Judith and Florence ask Alexi if everything is going well with the company and Alexi nods. Judith and Florence are satisfied with this response and leave him to do the job. Alexi has never maintained any financial records of the company. The company is unable to meet its financial obligations and goes into liquidation.

Advise the directors:

c. What are the penalties available to ASIC (Australian Securities & Investments Commission) in the case of such a breach?