Tag: Set-off

Proposed technical approach to achieve group liquidity centralization and separately-listed-company-funds independency
Accounting, Arm's length, Blogpost, Case Study, Cash Pool, China, Contribution by Jiaxin Huang, Contribution by Shining Lin, Liquidity Management, Regulatory, Treasury

Proposed technical approach to achieve group liquidity centralization and separately-listed-company-funds independency

An innovative approach to properly disclosing Cash Pool transactions for listed companies against the backdrop of the Kang De Xin case (the fall out of which triggered the great concerns from the regulators as well as the investors). How to protect shareholders and ensure listed subsidiaries maintain independence of liquidity and avoid core capital being influenced negatively. Continue reading Proposed technical approach to achieve group liquidity centralization and separately-listed-company-funds independency

Is set-off enforcement legitimate? – Essential elements to be considered before joining a Cash Pool. (3/3)
Accounting, Arm's length, Blogpost, Case Study, Cash Pool, Contribution by Jiaxin Huang, Contribution by Shining Lin, Liquidity Management, Treasury

Is set-off enforcement legitimate? – Essential elements to be considered before joining a Cash Pool. (3/3)

An important item, relevant to Corporate Treasury, is to gauge cautiously the corporate interests of subsidiaries and the associated risk, before joining a group’s Cash Pool. Also, subsidiaries should not simply follow instructions form the head office, but take responsibility in verifying whether or not participation in Cash Pools is possible. Why? Because failing to do so may have unexpected adverse consequences for all parties involved. Especially during times of economic downturn. Continue reading Is set-off enforcement legitimate? – Essential elements to be considered before joining a Cash Pool. (3/3)

Respecting Capital Maintenance Rules – Essential elements to be considered before joining a Cash Pool. (2/3)
Accounting, Arm's length, Blogpost, Case Study, Cash Pool, Contribution by Jiaxin Huang, Contribution by Shining Lin, Liquidity Management, Treasury

Respecting Capital Maintenance Rules – Essential elements to be considered before joining a Cash Pool. (2/3)

An important item, relevant to Corporate Treasury, is to gauge cautiously the corporate interests of subsidiaries and the associated risk, before joining a group’s Cash Pool. Also, subsidiaries should not simply follow instructions form the head office, but take responsibility in verifying whether or not participation in Cash Pools is possible. Why? Because failing to do so may have unexpected adverse consequences for all parties involved. Especially during times of economic downturn. Continue reading Respecting Capital Maintenance Rules – Essential elements to be considered before joining a Cash Pool. (2/3)

Consider Corporate Benefit at subsidiary level – Essential elements to be considered before joining a Cash Pool. (1/3)
Accounting, Arm's length, Blogpost, Case Study, Cash Pool, Contribution by Jiaxin Huang, Contribution by Shining Lin, Liquidity Management, Treasury

Consider Corporate Benefit at subsidiary level – Essential elements to be considered before joining a Cash Pool. (1/3)

An important item, relevant to Corporate Treasury, is to gauge cautiously the corporate interests of subsidiaries and the associated risk, before joining a group’s Cash Pool. Also, subsidiaries should not simply follow instructions form the head office, but take responsibility in verifying whether or not participation in Cash Pools is possible. Why? Because failing to do so may have unexpected adverse consequences for all parties involved. Especially during times of economic downturn. Continue reading Consider Corporate Benefit at subsidiary level – Essential elements to be considered before joining a Cash Pool. (1/3)