Many companies will experience short-term trading and cashflow issues during their lifetime. If these become significant and the company is unable to recover, then the Directors may need to consider placing the company into insolvency. In law, a company is insolvent...
When I discuss a set of financial statements with a business owner, an often uttered lament is “I have made this profit but where’s the cash gone?”. In days of your, it was a requirement that a set of financial statements would include a cash flow statement as an...
(This is a summary of an actual case. The names and details have been changed slightly to protect the offending parties.) B Ltd was a relatively young metal fabrication company, set up by an entrepreneurial character (let’s call him Richard B) who saw a gap in the...
