Archie and Edith Farmer decided to immigrate to New Zealand on a business visa. They wanted to retire and build their dream house - so they bought a small business, Tannery Clothing Ltd (which cost $1.5 million) in 2019. Archie and Edith are the directors and only shareholders of Tannery Clothing Ltd (a properly incorporated company), and they hired Tony Montclair to manage the company. From time to time, Archie would call into the Tannery Clothing Ltd. office to see how things were going. He would ask Tony a few questions about how business was going, enjoy coffee and croissants, and typically leave after an hour. Edith never went into the office and was not interested in business—she just wanted to move into their new home. In October 2020, Tony Montclair asked Archie and Edith for a $200,000 deposit to pay for the latest jewellery and sunglasses franchise to extend their stock. The franchise would cost $1 million, but Tony said the bank would easily extend their overdraft. Tony implied that the gross turnover could possibly increase by 25%, so Archie agreed.In December 2021, Archie was contacted by an Auckland company that claimed Tannery Clothing owed them $800,000 for stock that had not been paid for. Archie immediately contacted the Tannery Clothing office to find it closed. Moreover, it had not been trading for months, and the office building was empty. Tony had sold all the remaining stock and the machines. Archie called their accountant to find out that Tony had sacked him at the end of 2019.The IRD initiated liquidation proceedings in January 2022, leading to the appointment of a liquidator. When quizzed about the company's financial health, Archie replied that he had relied on Tony to handle all that stuff. Furthermore, Edith said she had nothing to do with the company—it was not her 'thing'. The liquidator could find no evidence of any proper financial records, and the company appeared to owe creditors more than $5 million. Archie and Edith claimed they were also creditors because they had invested more than $1.7 million in the company.With reference to the director's duties, explain what duties Archie and Edith have breached.Make sure to include relevant law - do not discuss liquidation proceedings.