Senior Vick from Alicante
Well-Known Member
This one is probably for OSB to venture a guess at. If I was rich enough to buy a medium size company say worth 50 million for arguments sake. If I ran the company down on purpose by selling its assets to cover day to day running costs whilst saddleing the company with unrealistic management fees for doing this, eventually leading to the the company being placed into administration and or liquidation would i be breaking the law. Obviously the management fees are for doing nothing and all i would be doing is making charges for doing nothing on paper so that i could get back maybe 5p in the pound should the company be sold on by an administrator in the future. Would i have to prove to the administrator i had actually done anything to levy those charges against the company in the first place, one would of thought that if you did not you would be defrauding any potential investor or purchaser of getting the business at a fair and equitable price? Not that this could ever happen to any company that I know of course.