Hastie Group directors may have breached their duties as the engineering conglomerate collapsed under poor management, a report by administrator PPB Advisory says.
A second creditor's report on the company's shock collapse in 2012 shows Hastie failed due to poor strategic, operational and financial management and increased competition.
PPB has told the Australian Securities and Investment Commission about possible breaches of directors duties and failures to provide required statutory reports to the administrator.
"We have identified a number of possible breaches of the (Corporations) Act as well as possible breaches of their duties at general law," PPB Advisory said in its report on Monday.
The report says creditors may be able to claim compensation against the directors for breaching their duties.
Claims may also be made against Hastie's auditor, Deloitte, for possible breaches of auditing standards.
ASIC said it would assess PPB's report to consider whether to take action against Hastie.
"We have no further comment at this time," the watchdog said in a statement.
Hastie appointed administrators last May after talks with banks and new investors to extend its loans broke down when the company discovered an employee had been falsifying accounts.
It suffered a $258 million loss in the 22 months to 30 April 2012, while its balance sheet at the time was $219 million with assets of $916 million.
The company was found to owe its bankers $529.9 million, and other creditors about $100 million.
PPB said its investigations indicate the company's revenue and project pipeline had been in decline since fiscal 2010 due to a perceived credit risk with customers and suppliers.
The report found Hastie failed due to its poorly implemented acquisition strategy, subsidising loss-making Middle East businesses as well as inadequate operational management processes and increased competition.
PPB also had concerns that the company's books and records did not correctly explain its financial performance and position.
"The books and records may therefore be deficient and give rise to a presumption of insolvency," it said.
But it said there were no indications that the Hastie Group traded while insolvent.
PPB has recommended to creditors that all Hastie Group companies be placed in liquidation.
Three companies that were part of Hastie Group were sold in a management buy-out for an undisclosed sum last October.
Hastie's collapse led to about 1500 jobs losses, with administrators receiving claims from about 1750 employees.
Hastie operated throughout Australia, New Zealand, the UK, Ireland and the Middle East, describing itself as a leading provider of technical and engineering services to the building, infrastructure and resources sectors.