Reference no: EM133267163

Sails ltd ( Sails) is a listed public company on the ASX. It manufactures expensive high -end sporting and leisure matches. Sails has a 100 million loan with Acme Bank ltd (Acme) on an unsecured basis, which is required to pay back in full by December 2022. After the sudden loss of a large contract, Acme informs Sails it will no longer provide it with further credit. Many of Sails suppliers now services it on a strictly cash-on-delivery basis only. Sails directors receive numbers phone calls and emails from creditors wanting to know when they will be paid. Some of Sails cheques also have bounded. Sails directors start to pay its more demanding creditors, while putting off its other credits. Sails share prices has significantly dropped. Anticipating the impending collapse of the company. Sails director transfer their most expensive yacht into the name of the spouse of Sails managing director. Creditors have successfully petitioned sails liquidation. With reference to the corporations act 2001(cth), advise whether the liquidator has any grounds to commence an action against the directors of sails for insolvent trading.