William Van Roosmalen, In-house counsel and Damien Grant, Principal from Waterstone Insolvency discuss about the Fatupaito case. Moon was the sole director of Metalsmiths Ltd (MSL). Mr Bates MSL’s accountant and business advisor suggested receivership for the company as it was facing financial troubles.
Mr Bates was appointed as a receiver of the company. Bates hoped to revive the company and continued to trade and incurred debts. Mr Bates was delegated power as a deemed director and was liable for reckless trading under Section 135 of the Companies Act 1993.