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Corporations Act and Accounting

Discussion in 'Business Legal Issues' started by Paul@PFI, 20th May, 2017.

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  1. Paul@PFI

    Paul@PFI Member

    Joined:
    20th May, 2017
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    Sydney
    Did you know that failing to keep financial books and records to record the company assets, liabilities, income and expenses is a legal issue that can result in the company being found to be insolvent.

    The Corporations Act and common law contains provision that implies insolvency if such records arent kept. Not statutory financial reports just accounting records that demonstrate the company solvency. The company can be wound up as a result and the Directors are liable.