Financial newspapers-midget widget was in financial trouble

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Reference no: EM131030256

Bill and Hillary are friends. Bill has recently retired and now has $450,000 in super. He asks Hillary, an accountant, if he should invest $200,000 of his super funds in Midget Widgets Ltd. Hillary tells Bill that she has looked at the accounts of that company and it is a good investment. Hilary does NOT charge Bill for her services, as they are friends. Unfortunately, Hillary has misread the accounts of the company, which is almost insolvent. Bill invests his money and Midget Widget immediately goes into liquidation and Bill loses all $200,000. Bill discovers that many accountants/financial planners were aware of the poor financial position of the company and warnings had been published in several accounting journals and financial newspapers that Midget Widget was in financial trouble. Discuss whether Bill has any legal rights against Hilary. In your answer consider if the legal position would be different if Hilary had charged Bill for her services.

Reference no: EM131030256

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