Joined: 11-Sep-2003 Posts: 3043
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@samface
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Sure, a company may declare themselves insolvent to a court as a means to get help with sorting out the debts.
No they may not. That's the Corporations problem. If they want the court's help, then they need to file for bankruptcy. Insolvency is a prerequisite to bankruptcy, they are not the same thing. It's just one number being bigger than another.
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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.
Insolvency means something different there legally. I think Tigger said over there it's similar to bankruptcy as a legal device. This contract uses our legal devices though, agreed to by all parties.
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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
That would be another funny case. If X is the value of assets, and Y is debt, and X-Y= the same before and after the sale, how does the date of the sale show they were only insolvent after it? How does that change any numbers? If they are insolvent after the sale, then they obviously were before it too.
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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?
There are at least hundreds of members here owed thousands of dollars by Amiga Washington. I'm sure if someone got their refund we'd have heard.
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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?
Did I violate political correctness by saying you don't need an auditor for the task of determining if one integer is larger than another one?
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If you only knew how much the income can change by simply filling out the tax return forms a bit differently
That's irrelevant. Insolvency only deals with assets and debts. (Come to think of it though, taxes were one of their debts.)
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... Sorry, this really isn't a math problem and your argument doesn't apply in any way.
Insolvency is a math problem, a simple one with two numbers. What part are we disagreeing on? Insolvency? What have I said that doesn't hold water? I'll link to legal documentation backing up anything I've said if you wish.
_________________ "If you want to tell people the truth, make them laugh, otherwise they'll kill you." - Oscar Wilde
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.
Thats exactly why courts can declare a company bankrupt when it is in the state insolvent. Now we are talking about insolvent (the state) and not bankrupt (the legal term).
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Oh, you're one of those guys who think we don't actually need auditor's, right?
Look, he was only talking about the skill to tell if the bottom line is less than or higher than zero. Not how to get there. If you start reading peoples post you might actually understand what they are trying to tell you.
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T_Bone 
