QN was owned by Palmer, the federal Member for Fairfax, and run by his nephew Clive Mensink.

Administrators from FTI Consulting have spent the three months since their appointment completing an investigation into QN’s dealings over the past six years.

FTI said it was of the view that Sections 180, 181, 182 and 183 of the Corporations Act may have been breached, while there were further indications the directors could be in breach of their common law and fiduciary duties and may have also committed offences under Section 184 of the Act.

According to administrators, the directors directed and/or authorised QN to enter into transactions with related parties which did not appear in the best interests of the company or for a “proper purpose”, and they may have gained advantage.

“In their capacity as directors’ of QN, they each appear to have failed to exercise discretion and avoid the conflict between the interests of QN and their own personal interests in related parties, and as directors, shareholders and/or political party members of the related parties, may have gained an advantage directly and indirectly,” FTI said.

“Their actions appear to have caused significant detriment to QN, having potentially appropriated assets ordinarily available to QN, and extinguishing any and all available alternatives and opportunities to QN in any short and long-term business strategy.

“Both Mr Mensink and Mr Palmer, in our view, appear to have been reckless, in exercising their duties and powers as directors of QN.”

There have been allegations that Palmer used the alias “Terry Smith” to continue to run the company and administrators determined that Palmer had acted as a shadow or de facto director.

“Our observations indicate Mr Palmer, a former director of the company, appears to have acted as a shadow/de facto director of QN at all material times from February 2012 up to the date of our appointment on 18 January 2016,” FTI said.

Palmer has come under increasing pressure after ABC’s Four Corners last night aired a program on the blurring lines between his political career and business dealings.

In a statement posted to social media, Palmer refuted claims that QN had given loans to him or any of his companies.

On ABC’s Lateline program last night, Palmer denied acting as a shadow director.

The suspension of the Yabulu nickel refinery in Townsville resulted in the loss of 700 jobs.

The second meeting of creditors will be held next Friday.