Request:
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Financial investigation aimed at identifying potential irregularities in the financial relations between a parent company and its subsidiary, the latter potentially bearing the characteristics of a sham company.
Our actions:
- We conducted a detailed review of the subsidiary’s accounts and the intra-group financial flows with the parent company — holder of 51% of its share capital — and its other affiliated entities. This review included an examination of the contractual arrangements governing intra-group relations, as well as the assessment of relevant electronic correspondence.
Result:
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The investigation identified atypical financial flows, unrecorded advances, and expense transfers, all of which are likely to evidence asset commingling and substantiate the legal characterization of the subsidiary as a sham entity.
