Joined: 10-Apr-2003 Posts: 1161
From: Norrköping, Sweden
@T_Bone
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T_Bone wrote: @samface
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samface wrote:
I believe only a court of law would be able to determine wether a company actually is in a state of insolvency or not.
Corporations are responsible for their own books. That's not the courts job.
Sure, a company may declare themselves insolvent to a court as a means to get help with sorting out the debts. In fact, as Kronos mentioned earlier, it's against the law to not do it in some countries, like Germany for example. However, if a company doesn't do it because they think they are still able to get out of the insolvency on their own, it would take a petition filed in a court of law to and a judge's decision to have a company declared insolvent.
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Of course they could argue that they wern't insolvent, but that would require explaining how the assets were sold and the debts not paid. That's a funny case of not being insolvent, especially when you are in court over a contract where insolvency triggers rights of another party of the contract.
I guess they could argue that they sold before the company went insolvent but such argument would be easy enough to verify by checking their creditors papers. Now who have they not payed and how recent is this information?
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That means not even Bill McEwens oral testimony would suffice. I mean, he's no auditor after all, now is he?
The day we need an auditor to determine if one integer is larger than another one, is the day I decide to get my CPA.
Oh, you're one of those guys who think we don't actually need auditor's, right? If you only knew how much the income can change by simply filling out the tax return forms a bit differently... Sorry, this really isn't a math problem and your argument doesn't apply in any way.