Study shows low adoption of deferred share plans Tom Gosling, Partner, PwC | Executive Fellow, London Business School | Steering Committee Member, Purposeful Company Taskforce has written a good...
The Financial Reporting Council (FRC) have announced an investigation into the audits by Grant Thornton of the accounts of Interserve (IRV) in the years 2015-2017. Interserve was a large outsourcing company with most of its business from Government contracts. It ran out of cash and went into administration on the 15th March with debts of £738 million. Readers will no doubt be aware that Grant Thornton were also the auditors of Patisserie Holdings and Globo, both cases where very substantial fraud ...
Yesterday the administrators (KPMG) of Patisserie (CAKE) issued their initial report. It makes for grim reading. The hole in the accounts was much worse than previously thought with an overstatement of net assets of at least £94 million. That includes:
Intangible assets overstated by £18m;
Tangible assets overstated by £5m;
Cash position overstated by £54m;
Prepayments and debtors overstated by £7m;
Creditors understated by £10m.
The accounts were clearly a total fiction. It is uncertain whether there will even be sufficient assets ...
I attended Interserve's General Meeting today and I am...
...angry with major shareholders, who didn't hold the board to account and couldn't be bothered to speak or vote today.
...angry with former board members who, in my opinion, did not properly exercise their corporate governance responsibilities.
...and angry with former executives who drove the Interserve ship onto the rocks... and were still well-rewarded.
In short, a massive failure of corporate governance and corporate stewardship. Those responsible should hang their heads in shame. Government should consider ...
Flybe is another example of the problems of the insolvency system not working very well. @LucyGJWhite explains it well in today's Daily Mail https://www.dailymail.co.uk/money/markets/article-6671393/Investor-anger-cut-price-Flybe-takeover.html which quotes me.
It is shocking that the directors rejected a merger deal at 40p and now are recommending a 1p deal - they should be ashamed.
The UK Shareholders Association/ShareSoc wrote a very good response to the BEIS Consultation on Insolvency and Corporate Governance https://www.gov.uk/government/consultations/insolvency-and-corporate-governance.
Click here for our response https://www.sharesoc.org/wp-content/uploads/2018/06/BEIS-Consultation-on-Insolvency-and-corporate-Governance-joint-UKSA-ShareSoc-response1.pdf.
We made the very important point:
In the US, Chapter 11 ...