Goldsworthy Developments Ltd established a subsidiary, Hitech Ltd, to develop and market telecommunications products. Goldsworthy made extremely favourable loans to Hitech in order to fund its research program. A prospectus was issued and Goldsworthy's interest was reduced to a 40% shareholding, however it retained three of its board members on the Hitech board. There are five directors on the Hitech board. Hitech was well-reviewed in industry journals, but its sales projections were not met because of a lack of promotion and it continued to be a heavily indebted company dependent on Goldsworthy's continued financial support.

If Hitech was trading whilst insolvent, could Goldsworthy face liability for Hitech's debts although it is a separate legal entity? Why or why not?