Eagle Aviation Co Ltd (hereinafter, Eagle) is an airline flying from Melbourne to all major destinations in Europe and the United States. Due to growing competition from newly emerged budget airlines, Eagle’s has experienced financial difficulties. When international borders closed due to the Covid Pandemic in 2020, Eagle’s situation worsened. Its executive directors Ian, Sam, Jemma, and non-executive directors Irene and Pradip wanted to save the company and in doing so, diverted its business from international to domestic flights. To do this, they purchased some small aircraft and borrowed $3 billion from Smart Bank in June of 2020. Unfortunately, in early 2021, with the spread of the pandemic worsening in Australia, Eagle had to suspend its domestic flights having become insolvent. 

Required: Have the directors of Eagle Aviation Co Ltd breached provisions of the Corporations Act 2001 (Cth) other than sections 181-193? What defenses, if any, may be available to them under these circumstances?

Answer rating: 100% (QA)

The directors of Eagle Aviation Co Ltd did not breach the provisions of the Corporations Act 2001 St... View the full answer