The case involved the almost failed retail property owner Centro Properties Group (CNP). Back in the times of the global financial crisis, it was found that the accounts prepared for Centro did not correctly categorise current liabilities, instead marking them as non-current.
Rather than pore over the ins and outs of the case, company directors should note that, in general terms, the recent judgment in the case against Centro directors and key management showed:
- directors must more fully understand the financial situation of their company
- it is not good enough to simply trust the work of advisers
Next time your company’s accounts are being prepared – for bank finance, audit or shareholders – keep the case in the back of your mind and adopt a sense of professional skepticism to what has been prepared. Please contact us to discuss your company’s situation.