- Information on the financial affairs of a business is important in many types of legal action.
- The information which is potentially available extends beyond the financial statements.
Information on the financial affairs of a business is important in many types of legal action. Such situations include loss of earnings or loss of profits claims, and cases in which valuations are necessary—for example shareholder disputes and matrimonial settlements. Consideration of a business’s turnover, cash flow and profits is often important in fraud cases and confiscation proceedings.
Financial statements
Unincorporated businesses are not generally required to make their financial statements publicly available, and the basic financial statements which many smaller companies file at Companies House are of limited value to anyone seeking to analyse a company’s financial position and prospects, as they may consist of little more than a balance sheet and very restricted notes.
It is clearly essential, therefore, to obtain a copy of a company’s full financial statements prepared for shareholders which will include
