In this video Des and John look at Members Voluntary Liquidations, Creditors Voluntary Liquidations and Insolvency from a company law perspective.
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Transcript of Video – Members Voluntary Liquidation’s & Covid 19
This transcript was created using AI and may contain some mistakes.
Welcome to this morning’s ten ten, and today I’m joined by John on. We want to talk about a knish you that is emerging and Corona viruses like peeling an onion. As the crisis unfolds, new issues begin to emerge on. The focus of accountants begins to shift day by day by day. And as I said yesterday like we’ve gone through possibly the most challenging week the account to Profession has faced was last week’s challenge that the last two to three weeks it’s about being dealing with the shock dealing with the transition and the covert legislation On this week.
Now we’re finding the people are beginning to settle back into the new normal. We’re being asked questions about financial reporting. We’ve been asking questions about everything. On the other question were being asked about already. Is insolvency now already in our cove? It’s serious. We have had Jim’s Jim Stafford from Freedom Stafford on talking to us about insolvency. But John today and is going to talk about from a company law perspective from a creditor’s voluntary liquidation from a member’s voluntary liquidation perspective, just some of the issues that are rising in relation of insolvency and some of the questions that we have just been asked.
Okay, so there is some documents and going with this live ten a ten. But what we do is Jonathan is going to get those documents up into the comments and after the video. If he doesn’t necessarily get them in while we’re live on here. And John, what’s your what’s your focus for this morning on day? What are you thinking? Yes, I suppose. Just e I suppose what has been going on? I just say business is normal. So some companies, you know, something probably had the intention.
Well, look, they were kind of thinking winding down anyway, I suppose is now a good opportunity rather than coming back over this and in the difficult recession. Potentially time to actually just, you know, say Well, look happened. Whatever I have accumulated here, whatever. You know, I was kind of thinking about winding down now. Anyway, so is a member of voluntary liquidation option to go in that particular case? Because obviously, you know, it’s going to be tough after when it comes.
When you come out, we’re gonna be using more of your cash and drain it out Ultimately, if your goal is and you’re kind of taking our way, that you’re going to see swell, you know, probably now could be eventual good time. T o Do remembers voluntary liquidation if, rather than incurring more costs in the future of trying to build up the business in the turnover again. So it’s just adoption to be out there for in N v L. You know you can do written resolution to this point in time.
You know it’s a support company. Special resolution comes company liquidations as parents that you have to a section to our seven kind of sack report, which will have to be sent into a zero. There is a difficulty zero of state at the time stamp it for them. They might be able to get it up on the system because they’re not necessarily scanning stuff. I know for us for Cem liquidations that we had we had Let’s I started. They have necessarily be scanning the CIA or the Declaration and the resolutions,
but the bank are working with us to allow us to transfer the money into her into a new the liquidators accounting relation to that. So it’s just a option for some clients if they were talking to come before. Well, I’m not sure how long I’m going for. Is this a good idea to actually say Well, why? Why Why Incur the cost of stress is trying to build it back up now, ongoing and, you know, claim you’re released. Obviously, you know, taxes to be a consideration if they’re obviously,
if you’re in an enviably, probably excess cash, it’s not excess cash. You’ve got funds about stuff in the company, so time is important to point view of whether you’re into return. Belief or entrepreneurial belief is also basically John. So what you’re describing on a practical basis. And I know that you’ve been working on a number of members voluntary liquidations in recent times, but you’re looking at people who were seeing, liquidating and on N V l as an option for them on. But they go on liquidate.
They do their members voluntary liquidation rather than holding on until Corona virus is over, rather than having cash draining and leaking out of the company, you’re you’re suggesting for some people where exists and cessation was already on the horizon and you’re seeing a non opportunity that they could liquidate now and go down the road of the ember member of voluntary liquidation rather than waiting for three, six, nine months as to whether this is going to get better or not. Yeah, that’s it, Like that’s an option for them to have on the table because,
you know, ultimately, probably when it comes back, you probably won’t be not make as much money is used to making anyway. So something to consider for those type clients is not necessarily everyone is considering that. But you know, we’ve had some queries in relation to this. Well, look, it’s just a good time is not a good time going for those people who are thinking about possibly finishing up anyway. You know, it’s not necessarily finished straightaway. You might put in straight away. You could try and get realised.
Your assets, your debtors to add a lot of that work is done before you go into liquidation of the liquid. As a point, it might be harder to get the money out of bettors source. Maybe that you’re trickling along and radical John, can I ask you s I had had a lengthy conversation with somebody yesterday on. As for always because it was getting deep into company law. It was getting deep into tax. I was getting deep into members laundry liquidations. I just said to them, Look,
way need to set up a call. You need to talk to John. But But they had a particular client where it was a family. It was a cash rich business. I’m basically the business, has some assets or brand, and the parents were looking at handing over to the kids. But it is massively Corolla virus impacted, and what they were looking at doing was they were looking at rather than continuing to pay staff on DME Ain’t ain’t nothing. Throughout, they were literally looking at the possibility of,
Well, we’re a cash positive business doing an N v l. The the parents are requiring retirement relief, the kids setting up a new company without any of the overhead but buying kind of the assets that the asset that is the value in the business buying that asset intellectual property on setting up new is that possible? Is that permissible? Is that prohibited from a company law perspective and where Legorreta are? If you can sell your business. But obviously, you know the CGT will have to be considered in the company because they’re selling the assets in relation to that because of his good will.
Potentially so it is trying to get the value on that goodwill at this point in time, which might be the easiest warrant value because of the situation that we’re in. But you know, it’s it’s not that it’s not permitted that it can be done. You know, obviously you can’t just have a situation whereby one person just stopped in the morning staffs of the very same trade. You know, the next day in a company to Section eight on seven is there to prevent that. But this is where there’s a new generation coming in.
You know, you could potentially have. In that case, you could What? I suppose you need to be careful that you know that if there is an asset going there and they’re getting some name, well, then technically, you know Theo company should technically be selling it or liquidation of selling. That asked, when you see what what What they’re thinking here is that they have a company and let’s say the network the company’s a million on, but basically they’re selling out. A brand, essentially, is what they’re doing now.
It comes with some assets, some intellectual property, but they’re selling out the brand and they’re saying, OK, we’re going to mop all this for six months. We’re going to go into a member’s voluntary liquidation Now we’re going to map all this for six months, but these people over here are buying the rights to this, so they’re actually paying consideration in, but it’s only a nominal consideration. They’re talking about twenty or thirty thousand to acquire because they’re saying Well,
actually, the the asset has no value right now in Corona virus times Well possible. But there’s there’s,
there’s there’s pitfalls. You have to be happy that the valuation is supported, obviously, you know, because if not,
it’s not. It’s a non cash has been transferred to comparisons connected with the members. So I suppose valuations are key down,
and then the CGT on the disposal of the brand in the company also needs to be considered, but it is possible that Okay,
so, yeah, you go. So I suppose just They said it will be a number of downloads We’re going to have a look at some just director directors duties in their duties in relation to this company,
you know, and deciding whether to go on the way so obscure what not to go into. I was just to highlight.
I’ll just share my screen. Have a look. Hopefully go. Well, I’m sucking it. Can you see that now?
Yeah. No, I can see you’re you’re you’re credited. Voluntary liquidation. And I could see your step plan there.
Yes, it is. If you’re obviously this is a separate situation where you think Well, look, maybe it’s not necessary going to happen now,
but I suppose it’s there just for, I suppose advisors to be aware of the process, put a company in to creditors.
Voluntary liquidation. So there is a step plan that goes through which it does. You know, the director’s may have meetings talking about cash flows as James Stafford,
obviously as you said, has done a very good presentation relation to this’ll Time cross and examiner ship on.
He was just identified that you know, if you want to put money in, maybe examiner ship might be a better route because,
you know, you could exclusion one or the other way. But these are highlighting that if you are going down this route,
we’ll look the board minutes, the director’s minutes. They will all need to be kept getting liquidator on board.
Did not do a statement of assets and liabilities. Just some advice here as to what steps to be taken maybe just prior to it.
So just you know, if you’ve decided, we’ll make sure that you’re not, you know, taking on more creditors.
You know, you’re you want to act in best interest company like best into the interests of cooperators you and more importantly,
I need to actually have documented how you’re considering that so that somebody’s coming open in liquid when they come in.
If they do come in, they can see the various documentation there and the thought process of the directors so that they’re not going to be restricted.
Under Section eight one nine, I thought was very good. Interesting fact that Jim started have made their last week,
he said. There was no there’s only ten percent of all CVS that go to restriction cases in relation to,
and so it’s all about documentation in your minister in relation to that. So obviously, John, Obviously John the focus for the last couple of weeks has been on the subsidy scheme,
but okay, so again, let’s look at what’s happened out in the marketplace there. Those companies, they’re thriving during this time there,
those companies that will survive and will try it afterwards. Dender the companies that are struggling, right, So so so so not everybody has a certain future right now,
John, I presume every company director in the country should be calling meetings, sitting down to assess their situation,
to protect them from future restrictions of things do go wrong. Absolutely. It’s all about documentation to board minutes what was there on fire when a liquid air is going to come in in the CBL,
see whether they need that they’re going to apply for a restriction or they have to play for restriction For the directors on also,
I suppose, is all about, you know, reckless trading will Look at this section is in relation to this.
Are we trading recklessly by not actually in the liberation this point times This document this while you’re deciding to trade,
If you are going to trade so there’s cheque this, you know, it goes through a lot of detail.
I’m going to go through here to be there for you. Also the bottom It just gets a minutes,
maybe from for directors meetings, talking about while we’re going to put a thanks to put this into CPL.
So you recommend that we have any GM for members. Then I support the GM notices there in relation to this proxies.
And then there’s a sample board minute in relation to just the statement of affairs here for the director, you know,
showing what we need to do up statement players on directors, approving that statement, affairs in relation to it.
John, you know, you know, sometimes on sometimes you’re almost afraid to ask a question because it sounds really,
really stupid. OK, now you will say, Well, days, you definitely don’t have that problem because you ask me stupid,
stupid questions every time we’re on a seminar webinar together. But do you remember Jim Stafford was talking about pre pack liquidations?
Yeah, he was talking about pre packed liquidations. Can you just talk us through your version of what a pre pack liquidation looks like?
Because I suppose what resonated me. I understood what Jim was saying. But what resonated with me? Well,
I’m a pretty pack liquidation. Surely that’s just Phoenix syndrome by another name on that. All of our company law changes since two thousand and one since the company Law Enforcement Act have been to prevent Phoenix syndrome,
where somebody has dropped from company and steps up another. What’s the nuance in a pre packed liquidation that stops that happening down?
Well, I suppose I’m not like I’m not gonna say I’m an expert in CVS. You know, we only do envy l’s ourselves.
In the past, you would have done a few CVS. But from that perspective is always a risk like that.
This is where your effective stopping your company, then setting up new company because you you have the intellectual profit yourself.
Think that you know, builders, things like that can start up straightaway in relation to that, I suppose there are.
You have to be careful that I suppose in those such situations that your document, and exactly why you’re doing how you’re doing it.
The fact that it isn’t company isn’t difficulty on what you’ve done to try to get over will be where I think he’s just make sure you have documented the basis of you’re not getting caught.
Wait. Well, I just did it because it suited me. And I set up a new company straight away.
No, I’m just just sections within their That tries to, I suppose, penalised directors if they do start doing that.
So So the concept of companies is is a core concept of capitalism. You set up the business, you have permission to fail and go on again.
So it’s not that we’re prohibited from failing in business. But again, what I’m reading into what you’re saying there,
John, is that documenting the decision making process is critical on. That’s what all these meeting ministers you’re showing us here are so critical.
Yeah, and I suppose the other one just download is just again the way subsidy. Just just just three more for company anymore,
I suppose. A precarious situation. So the previous one that we have, you know, it’s just taking out parts that weren’t administer your thinking for a company.
Maybe that is in a precarious situation that they’re documenting. Well, look, this is what I just want to do it.
This is what we’ve considered when we’re going into it. We’re also looking at all about, you know?
Well, look, looking at our management counter last bank statements, what do we have on documenting at the end?
We’ll look, we need to again prove here. We’re trying to as much as possible to make sure that we’re trying to come out of this situation.
Document factor. We’re doing it. We’re doing cost reductions all over the place. You know, it’s about we’re trying to run the business,
make sure that, you know, we’re not necessarily incurring huge costs here from creditors. So we’re protecting the credit in the best interests,
keep this business going throughout. And then, I suppose, resolving that it is in the best interest of the of the company to go into this because you know,
we’re going to get to subsidy on, hopefully afterward to make come out will have the link to staff in relation to Earth and then potentially just depart in red.
They’re saying it’s in the best interest of the company and also the creditors that we don’t place interpretation at this point in time because we believe we can weaken you know,
harness our betters when we come out is to get more out of credit if we if we have to.
So that that last paragraph, there really is a fundamental one, John, isn’t it that that that the basis for actually things may get worse before they get better.
But we’re going to get a better result by going further down to come back up. Because you see,
if somebody if somebody makes that decision and they don’t make it back up, well, at least they have a clear basis for it.
E just I love these minutes, John. I think you’re absolutely brilliant. But that’s what this is just another example of just again they’re acting in the best interest of the situation.
For now, maybe you’re deciding to show us what you’re deciding. Now that you’re not going to go into liquidation,
you’re going to just kind of see sit, not going necessary, say, going liquidation because you’ve determined by looking at this we believe that if we told point liquidator here,
the creditors will be at risk getting a lot a lot less. The debtors won’t pay as much because I find it so just documenting on that basis.
Look, actually, we’re going to maybe cease to business here, but we’re not gonna put into liquidation this their basis for it.
We’re looking at a cash for what are we getting in? What that is air getting in relation to us.
And then what kind of conclusion? Again, As you were saying, My look, we’re looking at this.
We still believe there’s not going to put this in voluntary liquidation CVS in this particular case because of the fact that if we did the debtors,
which wouldn’t pay as much for getting we’re getting on well where we are, we get money in. And so we still feel that it’s still a decision todo to continue to operate as going concern for the general’s probably point of view.
I got to review this with the advisor on a regular basis. Again, it’s all about documentation. What’s your basis for doing something in relation to it?
So you know, they’re just suggested minutes. It’s always, you know, every fax could be different for different entities.
But I suppose this key points that should be documented as to why you’re continuing on if you are continuing of these cases,
John A. General question insurance and my understanding is that some insurance policies and are paying out based on business interruption insurance.
And now some people might say, Well, that’s a that’s a flawed insurance policy. But some are paying out based on the government shutdown that if there’s a you know that if there is a reason that the business needs to be shut down because of some sort of unidentifiable disease.
And we have also seen some businesses where the business insurance covers, not the government shut down, but it covers.
If a person in the business has been identified with Corona virus that has resulted in the entire business being shut down.
And are you seeing or hearing anything in relation to insurance? Like obviously asses, the dust begins to settle a little bit into the new normal people.
Now we’re contacting their insurance companies. Have you seen anything in this regard? Jump. No, I haven’t.
I haven’t got any relation. I have had dealings with our queries in relation to people you probably better placed.
From that point of view, I haven’t heard I’m expected. Yeah, because because one of the questions today one of the questions that I had was that where somebody has an insurance policy which basically it doesn’t pay out turnover,
but it pays out gross profit for a period of time. And obviously any company who can came under insurance they wouldn’t be able to claim the subsidy scheme,
John, because effectively the insurance claim is maintaining in their interactivity levels. Yeah, you would have thought that I might be throwing you a curve ball.
Yeah, what they’re going to get in the gross profit figures? Yeah, so? So, basically,
under some insurance policies, they maintain gross profit figures. So if say, for example, in thinking of a manufacturing business here,
so they’re going to maintain gross profit figures and in maintaining gross profit figures, I presume somebody who’s claiming under insurance like that they don’t meet the definition of the twenty five percent drop,
so you can’t claim the insurance and the subsidy scheme. If the insurance covers all your your wages from a business,
I’ll be a little concerned about that as well, because obviously that when you’re given the figures for the claim,
you’ll be saying lister turnover, these air cost effective, you know you’re getting getting reimbursed for to turn over that you would have had if this hadn’t happened.
So you have been okay. You’ve done up. You’ve been up for some slides for John. Do you just want to get on slideshow there so we can see him in full?
Yes. Sarah. Twenty nine thousand. Excellent. Yet s o just again. Just some of reminders.
So there’s a director’s work duties their sports comply with our judiciary duties, Esso any any section to seventy to seventy one presumption their officers committed so of the default in these.
Well, then they’re liable to go on offence in their own, right. So what are their section?
Two, two, seven. You know, they’re they’re judicial duties is sort of the company on the company alone.
Za forceful, like any other duty is based on common law principles. But if there are, there’s a breach.
Want to validate any contract? So, while our lead two to eight good fe act in good faith,
interest company honestly and responsibly in accord with the Constitution and act legally not to use it. Probably for your own use,
John. Just just a quick question, John. You know, in accordance with the Constitution and act legally.
Where do we stand, John? Three. Four years in, in relation to people who have not yet done the companies Act fourteen transition of their constitutions Like when you when you enter into any kind of a transaction on behalf of a client,
I am I right in saying, John, the one of the first things. You do what every transaction is.
You take their old if it’s one of those Frankenstein constitutions and you, you convert it. Am I right in saying that or what you do?
Yeah, actually, that we would updated for that constitution because it just, you know, it’s obviously but best practise.
It’s if you have an old Constitution effectively, you know, you took on lt the Northern likely, but eyeing us in your old constitution will continue to carry on.
If it’s applicable in this company law, it’s just it doesn’t represent good practise. It also could say stuff that maybe wasn’t allowed in the the past without being in the Constitution.
Where is now under the Companies Act fourteen, it is allowed even it’s not in the Constitution, so I suppose it’s always it’s always important that you do.
But what would your advice remains that anybody was doing anything entering into any transaction they need to upgrade to a new constitution?
Yeah, usually, like it’s not going to be seen even cross if you do a transaction anyway, that you would do that because,
you know, obviously we’ve seen bank situation like that. They always look for these constitutions. After all,
constitutions in these transactions that safety required is to be known. There’s a reason to follow Okay and others.
Then, after stick to directors para track size and the independent judgement to avoid conflict of interest between directors duties in that of the company.
So you know any decision you make, you need to think about the company here, not necessarily about your own circumstances somewhat connected to you.
Jobs in the best interest due care, and there used to be used on having again regard to the members a swell as that to the credit to the employees on.
We’ll see for that for as we go through. There’s also an obligation for talking about CBL is that you need to have an obligation here to the members,
obviously, to make get as much possible directors have, but also the creditors. So that, you know,
you’re you’re not. You’re not reducing the money that the credits could potentially get. And John, I know that you know the answer to this off the top your head.
But I’m just thinking of a question that I’ve actually received in this morning, and it’s somebody who’s looking at They have a client going into liquidation on.
But it was sort of a blended question on subsidy schemes and liquidations in a liquidation scheme. Who pays the redundancy to employees?
And this is a company has been set up for a long time. There’s a substantial redundancy bill here,
and the company is just saying way Don’t have it. There’s going to be a shortfall. And this is like basically,
this is one of these motivating factors. The company is looking at it, saying we can’t get through covert nineteen,
so they’re probably going to go into business again, but they just they can’t pay the redundancy. What way does the redundancy subsidy scheme work for employees when you go down the route of the sea Vo So is this.
If you’re not going on, you know, they’re they’re going down the road, a CBO so basically the saying,
Yeah, we can avail in subsidy scheme. But we’re going to fail here. We’re not going to make it.
So so. But what happens to all these employees if we lay them off if we lay them off under the covert scheme,
right? So if they could let go of everybody in stop all the expenses that hunker down and come back again.
But if they lay off everything under the covert scheme, notwithstanding the legislation that talks about redundancy suspending the thirteen week period they’re going if we have to pay redundancy,
there’s no way we’ll make it true. So are we better off? Just go into liquidation now on day Don’t want to like they don’t like.
They care about their team, so they don’t want to leave them high and dry. But if they go into a C V L.
Now who pays the team’s redundancy? Yeah, so it will be the state’s liquidator disappoint. You have responsibility to layers with with the employees in relation to that they were made.
Is that the R P. Fifty for statutory redundancy, their entitlements are any on Hayley? Are unpaid salaries.
They will all go to the state here, so effectively is going to be the bill on the state.
The liquid would one appointed with the years with the employees in relation to that on, make sure that they are putting those claims and today into the state.
So e suppose it It’s your slide Talking about acting in the best interest of the creditors in the members Ondo have regard to have regard for the employees in this situation.
What they’re saying is, if we go into liquidation, they’ve got an extensive team. This is actually going to be better for their team.
Then if they if they laid him off knowing they cannot pay the redundancy bill, they’ve worked it out.
Yeah, as you say it, it’s on. That’s what their documentation is. If they were to want to do that,
well, then you know, as you can could say they could be insured because why does it go into the subsidy scheme and knowing that they wouldn’t let you get out at that point time?
And so, from his obvious personally perspective, just fraudulent trading. So if there’s anything being done selling assets that’s getting rid of assets.
Obviously, Section seven one seven seventy two tries to deal with that reckless trading. Our you know, this is where you continue to trade when the fact you should have ought to have known that you shouldn’t have traded because it’s create more issues for creditors.
Increasing the craters bill are reducing the amount that the creditors will get in relation to that section. One six ten allows liquid air to bring,
you know to the courts to have the directors and personally liable in relation to a zoo. Result of it.
So it is important that you do document and you consider everything you have a cash flows and you have base for what you gonna do.
There’s other eight seven six eight seven seven eight seven eight eight Just deals with, you know, providing false information.
Not necessarily. It’s a big world can be a big TV Ella’s if if they’re not, directors, aren’t necessarily know helpful or went to live with her s o there.
Find the main points. It’s what it’s all about, you know, documentation as to Well, if you’re thinking that with the risk here,
well, look what documentation What are we looking at? What cash flows? Cash Those key s towards what cash flows do we have?
What’s the basis for where we decided We’re not going to India. Our CVS at this point time a document in that on the on the paper making clear that this decision is made in the best interests of members on the creditors on this is you know that that’s that’s where we’ve come by step,
why we believe we’re not gonna go on CVS or if you are going to go. I think you might be going to CVS.
But it’s our point in the future. Or maybe it’s probably not in the best interests of on CBS now because,
you know, as we said, liquidator might get us much of debtors receipts as a zoo, Cos.
If it was continued to be trading to the public in relation to those particular cases, I was a key part of any of this.
The process here is well, I like just that to show I suppose in for anyone. It’s advising someone in a potential CBL is just todo I was schedule.
Obviously they should have done already, but it’s sorry it’s taken a. Transfer it over to that screen now.
Not an easy no no, it’s all it’s all fun and games using Zoom until there’s somebody. There’s a few hundred people looking at you,
John S o just just obviously. No. You know what is in there? What are the assets in relation to company?
What are the liabilities? And this is the way you’re looking at any. Any liquid are on. You’re putting into liquidation this statement affair that you would be doing up what you’re super preferential predators,
fortune estimated deficiencies, any preferential others, you know, and then the UN Security. What is the net deficit here despite time so,
you know, detail and then, Rachel, let’s say super preferential Pierce, I will be door preferential.
Obviously the revenue Pierre Pierre saying I’ve got a very good point made by you by Jim staff there last week was You know,
if you’re going to pay money, make sure you pay to pee. Wipe your side before you pay their back late because revenue can on take off the veil of Inc on a p away and have the direct the Jonas Director essentially exposed by making them taking tax credits sort of tax paid on their salary away and making them pay in their own form levels.
And John, obviously there’s lacks of companies are absolutely booming. I’m having really interesting conversations. I’m talking to an accountant one minute,
who has their biggest client is just going over the edge on talking to another accountant. Going like like my client is booming.
What do I do with this? This and this. So there’s different scenarios here, John, but I really the point that Jim Stafford made about not paying on the p o e parasite has almost treated differently.
Divac Inc tax. And if a company’s in trouble now, John and there is this sort of p o e pierce,
I’m moratorium. What what like Like what? Like obviously people who are going to take this p o E pierce I holiday on a veil of the subsidy scheme,
our name or exposed that you believe even in the current period. So that does the logic the gym was presenting.
Does that still carry true in fairness like, you know, where they don’t know what to charge interest in relation to late payments?
It would be the logical be there to try. You pay appear I peer site on. I suppose this is the revenue have shown that they do this.
And these, you know, in the bad situation and recession times they have on this for directors have paid money to somebody else other than revenue.
And as a result, if they have paid this P away, even Pierre wipe your site under own salary.
But I’m not not another employee salaries. Then they’ll still take the P A way that was paid in our salaries and deemed he paid in the employee salaries s O that is a very wide ranging section in section nine,
nine, seven, eight and that, you know, it’s always the advice that you child Peter, paid appear way before you start playing the period fat liability.
Okay, so this s O. Basically, this schedule here is is sort of on advisers tool to help them with the early stages of and discussing what is the actual financial situation on what are the what are the problems?
Yeah, absolutely. And I suppose the cash flow is all about king out. What is the cash flows here at this point in time with this here shows the extent of the problem,
I suppose a spreadsheet on who’s there? I suppose you’re looking at who here is going to get the most money and,
you know, by walking out who’s super preferential, whose preferential who’s on secured and seeing what’s best interest in all the credits here in these cases.
All right. Okay. So I I suppose, folks, First of all, John, thank you very much.
I, John John Dread seen emails coming in from you. The moment because every email he gets me is another idea of John.
Why don’t we do this next on? Why don’t we do that next? John is doing absolutely Trojan work on D.
He is supported by his team, but But I just wanted to thank you, John, for everything that you are doing.
And I I know the accountants are really appreciative, too. And folks, the bottom line here, the bottom line for what we put on this session.
Woz As people are moving as people are moving through the process, one of the things that accountants need to do with companies right now is clarified for them because if they are not in this thriving category anything below the training category.
The decisions that they make is critical. We’re not necessarily suggesting yes, there are going to be credited.
Voluntary liquidations. Yes, there are gonna be insolvency events. But the steps that people take now are critical.
The steps they’re taking in March and April twenty twenty are absolutely critical for an insolvency event that may hopefully never arised.
But if it ever does arise, it could be three months, six months, nine months. So the documentation of these decisions and the other nuggets that we wanted to throw in the very start of this process,
if somebody’s business is that end of line rather than continuing to fight the good fight, maybe now is the time to get out on members.
Voluntary liquidations are on option. They are opening their. So that’s our ten. A ten on the seventh of April.
And John, thank you very much for joining me. Although you’re watching us live and thank you. Anybody who’s watching the recording,
thank you and put your questions in. The comments were continuing to gather questions. Answer questions as quickly as we can.
We’re in this together, and we’re here to support and help accountants. Thank you and they see again,
let’s get it done