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A client owns several companies.Is it necessary to treat all companies under him at par ,if one of his companies default payment of loan ?

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Question added by mukkur srinivasan varadhan , Chartered Accountant , Chartered Accountant in practice
Date Posted: 2014/08/09
Waqayan Al Waqayan
by Waqayan Al Waqayan , Secretary of Sharia Supervisory Board (SSB) , Ahli United Bank (AUB)

it depends on what are you looking for in treatments:

- accountability

- default - legal action

- reporting - financial statements

- credibility - the credit side

khaled Ibrahim Sayed Abd El Salam Ibrahim
by khaled Ibrahim Sayed Abd El Salam Ibrahim , Chief Accountant , -ElMehy engineering company

We have to be honest before others , i mean as Bussnies wise or we can say it in professional way as Busniess Need its separte legal entity but from my work history , its all related to other , i mean if any problem occures either finance or admin or others then the owner is one person , how cam can't solve these problems?

Deleted user
by Deleted user

Companies are separate legal entitites. So, if one shareholder or director is having share in different companies, and one or more of the companies are declared defaulters, it will not impact other companies he own.

 

 

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