In January this year, April, May and June borrowed $500,000 from ABC Bank to set up a

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Question:

In January this year, April, May and June borrowed $500,000 from ABC Bank to set up a company, Brides Mades. This company provided bridal services to wedding couples. All three were directors and shareholders of the company, which also hired three staff to help run the business.

In March, all businesses in Singapore were drastically affected when the government announced a two-month lock-down of the city state due to the Covid-19 pandemic. Even after two months, businesses were gradually reopened by sectors. Bridal and wedding services were considered “non-essential” business activities, and were therefore the last to be opened. By that time, Brides Mades was on the verge of collapse with no business being done for several months. April, May and June have informed ABC Bank of the financial difficulties the company is facing, and the bank is now considering legal action to get back its loan.

Explain if ABC Bank would be able to hold the directors, shareholders, and/or staff liable for the $500,000 loan.