Qld Nickel: What the creditors report says

QUEENSLAND NICKEL - WHAT THE CREDITORS HAVE BEEN TOLD

*Queensland Nickel should be "wound up" or liquidated.

*QN became insolvent no later than November 27, 2015, and remained so until administrators were appointed.

*Director Clive Mensink and Clive Palmer may have breached corporations and other laws.

*Palmer acted as a shadow director because he approved and directed expenditure requests and dealt with staff on operational matters.

*Given this, Palmer "owed the same duties to QN" as a formally appointed director.

QUEENSLAND NICKEL - WHAT THE ADMINISTRATORS ALLEGE

*Palmer and Mensink authorised transactions that don't appear to have been in QN's best interests.

*They failed to exercise discretion and avoid conflict between QN's interests and their own personal interests.

*They may have gained an advantage because of their positions and access to related information.

*Their actions appear to have caused significant detriment to QN.

*They "appear to have been reckless, in exercising their duties and powers as directors of QN".

WHAT'S A SHADOW DIRECTOR?

*Someone who's not on the public register as a director of a company but directs and manages its affairs like a director would.

(Source: FTI Consulting report into creditors)