Practical Law Glossary Item 2-382-3824 (Approx. 2 pages)
Glossary
Solvent
Also known as solvency. In the context of finance, with respect to a company:
The present fair salable value of the property and assets of the company exceeds its debts and liabilities.
The present fair salable value of the property and assets of the company is greater than the amount that will be required to pay its debts and liabilities as they become absolute and matured.
The company does not intend to incur or believe that it will incur debts and liabilities beyond its ability to pay such debts and liabilities as they become absolute and matured.
The company does not have unreasonably small capital with which to conduct the businesses in which it is engaged as such businesses are now conducted and are proposed to be conducted.