Wang and John declare a ‘special dividend’ that is only payable to shareholders who are also executive managers in the c

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Wang and John declare a ‘special dividend’ that is only payableto shareholders who are also executive managers in the company.However, Erin argues that no dividend should be able to be paidbecause SCPL is insolvent and paying the dividend will prejudicethe interests of creditors and other members. Wang produces anauditor’s report from DodgyBros Accountants, who certify in anunqualified auditor’s report that the company can continue as agoing concern for the next 12 months. This is based on revaluingthe business’ goodwill and intellectual property to more than $20million. DodgyBros has no basis for this revaluation; they simplyrelied on the information provided by Wang.
1. What are the potential consequences under the CorporationsAct of paying the dividend? Can Erin stop the dividend beingpaid?
2. What action (if any) could be taken against DodgyBrosAccountants for their audit of SCPL and Pop Up?