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Premium Plumbing Pty Ltd (Premium) required further capital for expansion and borrowed $200,000 from Eastpac Bank Ltd (Eastpac). Several months later, an unpredictable misfortune occurred causing Premium to suffer a large loss. Premium immediately advised Eastpac and stopped trading. Premium is now unable to meet the repayments due on its bank loan and it has few assets. Eastpac is considering ways to recover its money. Would Eastpac Bank Ltd be successful in enforcing its claim against any of the following:

(i) the directors;

(ii) the shareholders; or

(iii) the employees of Premium Plumbing Pty Ltd? Discuss relevant sections and cases to support your argument.


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