Clive Palmer could be held personally liable and face a hefty compensation payout if he is found to have operated Queensland Nickel as "shadow director" while the company was insolvent.

Key points: Palmer says he did not covertly keep running the refinery after becoming an MP

Palmer says he did not covertly keep running the refinery after becoming an MP Palmer remained on Queensland Nickel expenditure committee after move into politics

Palmer remained on Queensland Nickel expenditure committee after move into politics Lawyer says Palmer could be liable if he acted as a de facto or shadow director

The billionaire MP has warded off accusations he has been secretly running the troubled refinery, maintaining that he retired from the company in 2013 when he entered the political arena.

But Mr Palmer admits he did remain part of an expenditure committee, and signed off on company purchases using an email under the name Terry Smith.

According to corporate law Professor Ian Ramsay of Melbourne University, it is possible for "director's duties" to be imposed on people who are not properly appointed as a director.

"If they are found by a court to be either a de facto director or a shadow director and also found to have breached their duties, that person can be personally liable and possibly be held to pay compensation," he said.

Professor Ramsay said if Mr Palmer was found to have been operating in the capacity of a director of Queensland Nickel, the implications could be significant.

"In particular, important director's duties apply to that person, and if a court finds that one or more of those duties are breached, then personal liability can be imposed on that person."

Professor Ramsay said "director's duties" included the duty to exercise reasonable care and diligence, to act in the best interest of the company, and not to have their company trade while it is insolvent.

Palmer denies covertly running refinery

Mr Palmer has denied suggestions he used the alias Terry Smith to continue covertly running his refinery.

"As I go across the country, all over Australia, I use a whole lot of different emails from a whole lot of different people," Mr Palmer said.

"That was somebody's email that I would have used that day to approve something."

Mr Palmer said he retired from his business operations more than three years ago, but admitted he remained part of the nickel refinery's expenditure committee.

"I was the CEO there for four years and I've got that personal experience, and I agreed to stay on that committee with six other people," he said.

"And to have an approval, it's not just me that approves things, it's the committee, and that's all it is."

Mr Palmer said he was satisfied in how the business had been run, and again defended the $21 million Queensland Nickel has donated to the Palmer United Party since 2013.

"There has been 2014 audited accounts [and] 2015 audited accounts, which showed the company was completely solvent."

Since Queensland Nickel was placed into voluntary administration last week, there have been concerns about whether the company has the capacity to pay the $60 million it owes its creditors.

Mr Palmer said he hoped the 237 refinery workers who lost their jobs were paid their entitlements, but said it was out of his hands.

"I think they should get their entitlements," he said.

"I've done all I can do in my family — I've put up $250 million of assets to support any arrangements that the administrator comes up with — but the administrator is the one that's in control."