This is a wake up call for all FinTech startups, including Indian, dealing with trust of millions!
You should also know that class action suits can now be filed in India under the Companies Act, 2013. These provisions permit members and depositors to approach the National Company Law Tribunal (“NCLT“) if they believe that the affairs of the company are being conducted in a manner detrimental to the interest of the company and its shareholders.
Coming to the news, Germany-based Wirecard has filed for insolvency, owing creditors almost $4 billion after disclosing a gaping hole in its books in Germany’s worst accounting scandal.
It comes after the paytech firm disclosed a €1.9 billion hole in its accounts last week.
News of its insolvency filing has causing its shares to dive almost 80% on 25 June. They have lost 98% since auditor EY questioned its accounts last Thursday, as reported on Reuters.
Its implosion came a week after EY, its auditor for over a decade, refused to sign off the 2019 accounts, forcing out chief executive, Markus Braun, and leading Wirecard to admit that $2.1 billion of its cash probably didn’t exist.
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Wirecard files for insolvency amid accounting scandal - FinTech Futures
Wirecard has filed for insolvency, owing creditors almost $4 billion after disclosing a gaping hole in its books in Germany's worst accounting scandal.
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