ABC Limited has been unable to pay its debts for several months. Rumours have been circulating for weeks that the shareholders would be convening a meeting to place the company into voluntary liquidation. Creditors are anxious and some of the larger ones wish to take action against the company. They have made their position known to the shareholders of ABC Limited.Required:

(b) If you were asked to advise the creditors what advice would you give them as to the action they may take against the directors of ABC Limited, given that it has continued to accumulate losses. (7 marks)