Computer Ltd has been solely managed by Michael, who is the managing director of the company. Ever since the incorporation of Computer Ltd, Computer Ltd has received the financial support from Fashion Ltd, its holding company whenever Computer Ltd is in financial crisis.Several months ago, Computer Ltd was insolvent. Upon the representation from Michael about the financial support from Fashion Ltd to Computer Ltd, Bank Ltd loaned to Computer Ltd the sum of HK$5 million without security. Computer Ltd is now being wound up by its creditors. By reason of a sudden change in the structure of Fashion Ltd two months ago, Fashion Ltd has refused to give further financial support to Computer Ltd.Required:In relation to company law, advise Bank Ltd as to whether Michael is liable for fraudulent trading under section 275(1) of Companies Ordinance (Cap 32). (10 marks)
