On the
web
RSS LinkedIn Facebook Twitter
Videos +
Podcasts
Taxgone TV Taxgone Radio Taxgone OK Taxgone News
Recent
Archive
Blogroll

Categories

« Back to posts

Can a Company Voluntary Arrangement be morally justified

A small tradesman that is owed money to a company that has an accepted Company Voluntary Arrangement in place may feel that a Company Voluntary Arrangement is not justified and is immoral. That is just one persons point of view.

A large supplier that is a creditor in the Company Voluntary Arrangement would not feel the same way. If the company had chosen to enter into voluntary liquidation then that supplier, in all probability, would have received no or very little repayment.

When HMRC get caught up in a Company Voluntary Arrangement, as they often are, they nearly always vote for acceptance. There has to be a good reason for rejection, although they are not obliged to reveal what those objections may be.

A Company Voluntary Arrangement is morally acceptable as creditors have the final say and by their acceptance of a proposal they are agreeing to the moral principles of the final deal. After all, they could always say no if their principles stood in the way of accepting repayment.

HOME | BLOG | WEB POLICY | DISCLAIMER | EMAIL SUBSCRIPTION

Copyright 2013 Taxgone. The trading name for Tax Office DM Limited is Taxgone.
The trading name Taxgone is owned by Taxgone Limited and has been issued under license to Tax Office DM Limited.
The domain name www.taxgone.co.uk and www.taxgone.com, together with content, is owned by Taxgone Limited.