The cats stay fat

David Cameron has said something about wanting to help small companies get paid on time by larger companies.  I'll believe it when I see it.

There seem to be a lot of company directors in this country who are happy to earn huge salaries, but who are not always keen to ensure that creditors are paid in good time.

Add to this that paying large salaries to its directors brings very few real benefits to a company.  For example, do large salaries guarantee that the company will never be prosecuted?  Do large salaries guarantee that the company will never be the target of litigation?  Do large salaries guarantee that the company will never be insolvent? 

If David Cameron wants to help businesses, then he should bring in a law requiring companies not to pay large salaries to their directors unless creditors are paid on time, and the company remains solvent.

I have previously written about fat cats as follows:

A woman scorned

A small victory in Barnet

The banksters are not Jonathan and Charlotte

HS2 fat cats