Jamie and Larry Are the Only Directors of Titanic Pty

Multiple Choice

Jamie and Larry are the only directors of Titanic Pty Ltd. Mary is the Chief Financial Officer of Titanic Pty Ltd. It has been determined that Titanic Pty Ltd was insolvent and during the time it was insolvent it traded thereby incurring debts. Which of the following is incorrect:?

A) Jamie, Larry and Mary may face liability under section 588G for insolvent trading.
B) Jamie and Larry could possibly be found to have committed a criminal offence.
C) Even if they have breached 588G, the directors of Titanic Pty Ltd may avoid liability if they can establish a defence under section 588H.
D) There would only be a breach of section 588G if at the time of incurring the debts, Titanic Pty Ltd's liabilities exceeded its assets.
E) If Titanic Pty Ltd paid a dividend while it was insolvent, this would be automatically deemed to be an incurrence of a debt for the purposes of section 588G.