Hot potato this month's dilemma.
Author | Barman, Tanya |
Position | Update - Brief article |
I am the financial director of a family business, which although it's in a difficult financial position, is trying to prove it is a going concern. On my arrival it was announced that I was part of a strong management team that could turn the company around.
[ILLUSTRATION OMITTED]
My advice is that the business model is no longer appropriate, yet there is little effort to address the issue at source. I recently resigned as an executive director and have now handed in my notice as FD. The owner, who is also the chair, has demanded that I do not inform the banks or auditors that I am leaving the company - presumably because this may weaken the company's position. I feel uncomfortable about not formally mentioning it and if asked directly I would not lie. On the other hand I am conscious that announcing my departure may jeopardise jobs and the company's short-term reputation.
Our response:
The short term is the issue. If you believe there are fundamental concerns with regard to the business...
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