Question

Why should a corporation pay their dues on time, what are the consequences if they don't and what are some suggestions to make sure they do pay their dues on time?

Answer 1

A corporation should pay their dues on time so that it gets the facility to pay off due at a time later than when the expense invited. If it defaults on payments of its liabilities on time, then the persons dealing with the corporation would stop providing time for payment of dues and would want instant paymemts to continue business relationship.

If the corporation does not pay it's does on time then in the worst case scenario it can have to wind up it's business operation and declare insolvency.

To make sure that the dues are paid on time, the creditors should make rigorous follow ups from the corporation regarding clearance of dues at the earliest and take legal actions if it does not honour it's commitment