Clinton, Joseph and Elizabeth are the directors of BTN Pty Ltd, a mobile phone company. Joseph had known that the company was in financial difficulties in December 2009 but had assured his fellow directors it was just a temporary cash-flow issue and that the company could trade out of its difficulties and pay all of its creditors by February 2010. However it was unable to do so. Joseph admits that the company's difficulties began when the directors made a decision, after careful research and an independent consultant's report, to invest heavily in technology that was quickly rendered obsolete by the introduction of the "tablet" technology.

In March 2010 Elizabeth and Clinton became concerned about the increasing number of "final demand" notices from suppliers and asked to see the actual accounts rather than continuing to rely on the assurances of Joseph. It was only then Elizabeth and Clinton realised that the company was insolvent and they immediately filed an application to wind-up the company. It went into liquidation in April 2010, owing large sums of money to its creditors.

has joseph breached s181 or s182 in the corporactions act 2001