The Power of None

On this day, Corporate Blawg reviewed an $8,000,000,000 intra-group subordinated loan facility for a client. The terms and conditions are about 15 pages long - shorter than Corporate Blawg's overdraft agreement. The opening clause of the subordinated loan facility states that the loan: "shall not exceed $800,000,000".
          Initially aghast, Corporate Blawg's eagle-like eye for detail did not pop out with horror, but his buffalo of pragmatism marched on. All along the commercial beaver had been placid since the loan is intra-group and states "Eight Thousand Million" in a number of places (excuse the pun) - so what's a missing zero between friends?
          In the tax case 6960: Kubota (UK) Ltd (1992) the court held that although perfection is not required in documents - the larger the business, the higher the standard to be expected. Facts which might excuse a sole trader will often be of no avail to a large enterprise. Even where the penalty is very substantial compared with the error giving rise to it; that is not a relevant issue when determining whether a reasonable excuse exists.
          Corporate Blawg recommends not finalising any documents until they have had a sixteen-eye review, 3 cold reads, a 2 day stand-still period, 10 sanity checks and have been sniffed over by an afghan wolf hound.

Comments

[Cheerful Bunny]

Love the links - especially the Afghan WolfHound. Next time warn me to turn off the speakers on my computer in the office!

[Paul Caughell]

Thanks for the (accidental?) link to my website :D