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ARTICLE · 12 JULY 2014

The positives and negatives of enforceable undertakings (EUs)

Holley Nethercote
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The financial impact of an enforceable undertaking may cause cash flow difficulties for an affected business or person,.

AustraliaFinance and Banking
Grant Holley
Grant Holley
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Most business people, if asked to comment on the state of the EU, would provide their views on the problems facing the European economies. For those in the Australian financial services industry the question may prompt a very different answer. For example, "Our EU is costing us a fortune, we've had experts and consultants trawling through our business for the last 12 months" or "The training never seems to stop; I wish we could get it over and done with and get back to business".

The financial impact of an enforceable undertaking, or EU, can be significant and may lead to cash flow difficulties for the affected business or person. Sometimes the Pingee agrees to pay compensation, but even in the absence of this, the professional fees and business interruption can be significant.

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