Paladin of the Pegasos
Posts: 1724 from 2012/3/22
From: Stockholm, Sweden
I don't think there is a law against being not profitable. If it is a share holding company all the company need to do when it's out of cash is to ask it's share holders for more. Because then the company is only accountable to it's shareholders and if they think it's a good idea to invest more money it's perfectly legal. Which is what I think the presumably main shareholder Trevor does.
Remember the IT bubble? The share holders kept pouring in money into hugely unprofitable companies because they thought one day in the not too far future it would pay off. And most of the companies went belly up once the share holders realised that their "multi billion dollar companies" was worth about as much as a hot dog stand. The share holders had to take the knock-back because it was up to them to decide whether to invest more and more money into it or not. The only thing the companies had to do was not to lie about its revenue.