Analysis of Liquidation Process of HIH Insurance, ABC Learning and One Tel Phone Company

Running head: FINANCIAL ACCOUNTING
Financial Accounting
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1FINANCIAL ACCOUNTING
Executive summary
The liquidation process refers to the winding up process of the enterprise that is attached with the
procedure in which all the affairs of the business operates. The different companies operate as
per the Board of directors, who forms the main element of the management of the company.
From the above analysis it can be portrayed that the primary reason for company winding up for
the above mentioned organisation was poor corporate governance and inaccurate risk
identification in extending the operation. These organizations even were unsuccessful to receive
reasonable and a genuine practices of accounting to adopt the areas of financial position and risk.

2FINANCIAL ACCOUNTING
Table of Contents
Introduction......................................................................................................................................2
Company overview..........................................................................................................................2
The various events contributing to the failure and wind up of the corporate governance:.............4
Ethical Strain:..................................................................................................................................7
Recommendations............................................................................................................................8
Conclusion.......................................................................................................................................9
List of References............................................................................................................................9

3FINANCIAL ACCOUNTING
Introduction
The process of winding up refers to the liquidation process of the enterprise that is
attached with the procedure in which all the affairs of the business operates. The assets and the
liabilities distributed and there is settlement of the creditors’ claims completely pr partially that
has been warranted. The different companies operate as per the Board of directors, who forms
the main element of the management of the company. The board of directors also has the power
of taking the various decisions of the company. The decision is taken considering the various
interest of the shareholders or the stakeholders of the organization (Clarke and Dean, 2014). It is
the process of decision making is a tool that is effective for the determination of the prolonged
existence of the enterprise since it is the key essence of survival for the company.
The various effective company operations are in general regarded as the corporate
governance. This defines the performance effectiveness that is based on the guidelines, principles
and the various provisions of the laws and statue that is being prevailing in the particular nation.
In case a company fails in binding the mentioned principles or rules it can reflect that the
company is incapable of complying with the various principles that guides the governance
procedure. The present discussion deals with the process of determination of the liquidation of
the three organisations namely HIH Insurance, ABC Learning and One Tel Phone Company. In
the report the focus has also been put on the reason for which the chosen companies have wound
up their business. The study also highlights the process of corporate governance and ethical
principles.