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llnm questions about insolvency and stuff

llnm questions about insolvency and stuff

Postby landlordnightmare » Fri Nov 08, 2013 10:46 pm

[Introduction by atticus:

I have split this post from another topic. It had no relevance to the subject under discussion, but clearly raises important questions. The questions that nighty ask relate to when directors of a company should put a company into liquidation and what happens if they do not.]

It could quite easily for the OP if they have evidence.

As it could, equally/should have?? forced the directors of the bank with the largest balance sheet in the world to have done so as well. They did not seem to do the 'right thing to do' at the time.

I throw it back to you - what happened to them? What happened to the guy who was a least making a good fist of trying to sort out the mess?

Where does the guy who created the mess come from in terms of background?

Answer those by PM or otherwise and I will come back to you.....

That, to me, Sir Finch, gives us all a very good ability to complain - as if you hadn't noticed - we are all shareholders - and ... of the ex directors.....?
Note: I am not legally qualified, just been around a few blocks. The sorry cynic.
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Re: llnm questions about insolvency and stuff

Postby atticus » Sat Nov 09, 2013 9:03 am

If a company avoids insolvency by obtaining an injection of capital, it does not need to go into liquidation, insolvency having been avoided.
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Re: llnm questions about insolvency and stuff

Postby dls » Sat Nov 09, 2013 11:06 am

The lines in these situations are very often very unclear.

It is all context. A large bank might quietly know (have known) that for insolvency purposes the government would catch a faller. Equally the regulation of banks appeared to be so extensive that it would wrongly be assumed that if you met banking standards, general insolvency issues need not be considered too closely.
And again, it was all a big bubble - as seen now - but many thought this bubble really quite unburstable.
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Re: llnm questions about insolvency and stuff

Postby zebedee » Sat Nov 09, 2013 1:49 pm

All banks - well those of substance anyway - are technically broke all the time. The test would be a simultaneous withdrawal of deposits.

All money systems of the kind we are familiar with depend entirely upon public confidence - a promise to pay the bearer.

Bitcoins take this a stage further.
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