Advertisement

Capital Reconstruction

  • P. Stevens
  • B. Kriefman
Chapter
Part of the Macmillan Work Out Series book series (MCWO)

Abstract

Capital reconstruction schemes usually become necessary following periods of losses, and any or all of the following features will be present.
  1. (i)

    A debit balance will have built up on the profit and loss account.

     
  2. (ii)

    In addition to (i), there may be other debit balances on the books, representing a non-existent or fictitious asset — e.g. goodwill.

     
  3. (iii)

    The business may be unable to meet its obligations to creditors as and when payments become due. These obligations will include interest relating to loans.

     
  4. (iv)

    There may be arrears of dividends on cumulative preference shares.

     

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

Copyright information

© P. Stevens and B. Kriefman 1988

Authors and Affiliations

  • P. Stevens
  • B. Kriefman

There are no affiliations available

Personalised recommendations