Section 4 relates to the Solvency and Liquidity Test and is relevant if the company entered into any financial transaction during the previous calendar year.
A company satisfies the solvency and liquidity test by ensuring:
- The assets of the company, fairly valued, equal or exceed the liabilities; and
- That the company will be able to pay its debts as they become due in the ordinary course of business for a period of 12 months.
Recent Comments