Question one (40 marks) The company, Moonlight Electronics Ltd was formed in London in 2002. Soon afterwards th company started to face financial difficulties In July 2004, the board decided that they needed to injet more money into the company. In December 2004 the company took a loan of & #163;4 million fro Bank of Liverpool. This loan was arranged as a floating chrge secured on a substantial part of the company`s assets. However, the directors were so busy with christmas preparations that they forgot to register that loan. In August 2005 the company took an unsecured loan of & #163;3 million from Quickie Bank. A petition for winding up the company was prsented to the court on 4th January 2008 by one of the company`s creditors, the Northminster Bank plc. The court granted a windng up order on 25th April 2008. In the light of the winding up order, discuss the legal implications of the following transactions (a - d) below. a) In December 2006, the company sold one of its cars for & #163;3500. The car was worth & #163;27,000. b) The implications of loan of & #163;4million from Bank of Liverpool. c) In November 2005, the unsecured loan of & #163;3million from Quickie Bank was converted into a floating charge secured on a substantial part of the company`s assets. d) In 15th February 2008, the directors sold the company`s guest house for & #163;930,000.However, this house was valued by independent valuers at only & #163;350,000 in the same month. Question Two (30 marks) Following the winding-up order of Moonligh Electronics Ltd in Quesion 1, discuss the guidelines which the courts would adopt in reaching a decision as to whether the directors of that company should be disqualified.