then surely it had to have been trading recklessly? Either the directors or auditors should have f lagged something along the way.
This is wrong on so many levels of corporate governance.
Machanik argues: “Looking back now I know what I should have done. I should have allowed the company to fold, declared bankruptcy, and walked away. But I couldn’t allow myself to do that. I felt it was my responsibility to my employees and their families they were supporting. So I did the unthinkable. I accessed the trust account in order to save the business.”
Rubbish – the property market didn’t suddenly boom again in 2010 and give you breathing space to put a surplus back in the trust account.
Based on the numbers Machanik put into the public domain in this opinion piece we can only conclude that this is a business that was pillaged and defrauded. There were no management controls put in place, the business (and trust) accounts were treated as a personal piggy-bank and ultimately Machanik burnt the very stakeholders she claims to have been protecting.