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Carillion liquidator files £1bn claim against accountants

AsleepInYorkshire
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Carillion liquidator files £1bn claim against accountants

#460238

Postby AsleepInYorkshire » November 23rd, 2021, 8:54 am

Carillion liquidator files £1bn claim against accountants

The Official Receiver is understood to be advancing a legal claim against auditors of collapsed contractor Carillion that could target as much as £1bn in damages.

Sky News said the liquidators filed the claim on Friday.


AiY

Alaric
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Re: Carillion liquidator files £1bn claim against accountants

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Postby Alaric » November 23rd, 2021, 1:47 pm

AsleepInYorkshire wrote:The Official Receiver is understood to be advancing a legal claim against auditors of collapsed contractor Carillion that could target as much as £1bn in damages.




The Official Receiver is understood to be pursuing £230m of losses in the form of dividends it claims should never have been paid out by Carillion as it headed towards financial failure


Shareholders were left with net assets of £ nil but had the dividends as some form of compensation. The net worth of Carillion was in effect stated as minus £7 billion . Limited liability capped the shareholder's exposure to this a £ nil. .

The contractor went bust in January 2018 owing nearly £7bn.


That's an awful lot to hide away by creative accounting.

Bouleversee
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Re: Carillion liquidator files £1bn claim against accountants

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Postby Bouleversee » December 10th, 2021, 5:13 pm

Alaric wrote:
AsleepInYorkshire wrote:The Official Receiver is understood to be advancing a legal claim against auditors of collapsed contractor Carillion that could target as much as £1bn in damages.




The Official Receiver is understood to be pursuing £230m of losses in the form of dividends it claims should never have been paid out by Carillion as it headed towards financial failure


Shareholders were left with net assets of £ nil but had the dividends as some form of compensation. The net worth of Carillion was in effect stated as minus £7 billion . Limited liability capped the shareholder's exposure to this a £ nil. .

The contractor went bust in January 2018 owing nearly £7bn.


That's an awful lot to hide away by creative accounting.


I lost a lot of money with 2 holdings in Carillion, having held on till the end. Don't tell me I am now expected to pay back any dividends I may have had in the fairly short time I held them; I haven't checked what I received but it would have been less than peanuts by comparison with the investment loss. Unbelievable! Perhaps we should have official auditors, paid rather less than the astronomical sums the big auditors pay themselves, who can be held to account so the shareholders don't suffer if the audits aren't up the scratch. It's their job to check that everything is as it should be. What else are they for? They should be held accountable. I'm getting to the stage where I can hardly bring myself to buy any shares as the chance of getting a positive return on my investment diminishes every day as the depressing news rolls in.

Alaric
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Re: Carillion liquidator files £1bn claim against accountants

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Postby Alaric » December 10th, 2021, 5:35 pm

Bouleversee wrote:Don't tell me I am now expected to pay back any dividends I may have had in the fairly short time I held them;


The concept of limited liability resricts or limits the liability of shareholders to the amounts subscribed for the shares.

Had the auditors been more on the ball, they perhaps could have noticed that Carillion struggled to find the cash to make dividend payments. Stopping dividends may have been marginally benefecial to other creditors Against that, such an announcement might have accelerated the collapse.

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Re: Carillion liquidator files £1bn claim against accountants

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Postby monabri » December 10th, 2021, 7:24 pm

Tell you what, I'll pay back all the dividends received from CLLN when the Directors pay back theirs along with their bonuses.

I'll write the cheque the very same day!


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