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companies can't refund money they don't have; people who are owed money become creditors in bankruptcy. The company can, however, attempt to stay afloat and p
by fsckboy 3y ago
companies can't refund money they don't have; people who are owed money become creditors in bankruptcy.
The company can, however, attempt to stay afloat and prosper enough to make creditors whole.
- deleted 3y ago[deleted]
- donavanm 3y agoIm not in the US, but here in Australia this would smell of “trading insolvent” and is a short path to piercing the veil/personal liability, fines, and prohibitions against serving as directors or officers for everyone involved.
- MichaelZuo 3y agoIt's a much higher bar in the U.S. to do so. Which is part of the reason why startups love moving from Australia to the U.S. but not the other way around.