The fate of dormant companies
Article Abstract:
Dormant companies can create accounting and management problems if they are not properly dealt with. Section 252(5) of the Companies Act of 1985 defines dormant companies as companies that have not had any significant accounting transactions during any period. Under Section 652 the Registrar of Companies may begin the procedure for striking a company off the books. The procedure takes about eight months and involves: writing letters to the company in question; publishing a notice in the Gazette; and finally striking the company off the books. Any company liabilities, insurance payments, and missing returns will be enforced, even if the company has been dissolved. If an aggrieved party has the company restored to collect debts, the company can only be dissolved again by a formal liquidation.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1989
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Spot danger signs before it's too late
Article Abstract:
Warning signals that a corporation could fail are discussed, including: an old-fashioned company image, weak financial management within the company, an autocratic chief executive, inadequate financial controls, and an inability to respond to industry or market changes. These warning signals are more effective than traditional accounting methods for recognizing the potential business failure, because traditional accounting methods only uncover failure when it is too late to stop it. Also discussed are the management mistakes a company can make that will act as catalysts for business failures: excessive business operations that impair cash flow, business projects which could bankrupt the corporation due to their size, and excessive borrowing.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1986
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Why minutes must be made to count
Article Abstract:
The board of director minutes should provide documentation as to a corporation's history and can become valuable records for outside auditors. In Britain, general board meetings' minutes can be inspected by anyone, but executive board meetings' minutes are available to the members of the board only. Board meeting minutes should list all parties present, and failure of the board chairman to sign the minutes will invalidate the proceedings as a board meeting. Minutes of meetings should also avoid detailing the opinions of the board members present and should simply describe decisions reached.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1984
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