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liquidators and receiversthe distinction between liquidators and receivers must be kept cleara a receiver is a representative of secured creditors
revival of a dissolved companyliquidation leads on to dissolution of the company the court may however within the ensuing two years order that
legal proceduresthe court may order the examination in private or public ie open court of an officer of a company in liquidation or of any person
misfeasanceunder s324 misfeasance proceedings may be instituted against a director promoter manager liquidator or officer including an auditor of a
intent to defraud the italian creditorthe company owed money to trade creditors and also had outstanding against it a large claim for breach of
several rules for fraudulent tradingvarious rules have been established to determine what is fraudulent tradinga only persons who take the decision
fraudulent tradingunder s323 if the court finds that the business of a company in liquidation has been carried on with intent to defraud creditors or
fraudulent preference - liquidatorwhen a transaction is void as a fraudulent preference any charge created is void and any cash paid or property
directors liabilitythis was fraudulent preference and the bank must repay the sums received the directors liability under their guarantee to the bank
fraudulent preferenceunder s312 any disposition of the companys property and any creation of a charge fixed or floating effected during the period of
principle of floating chargesthe general purpose of the rule is to prevent an unsecured creditor of an insolvent company from getting advantage over
avoidance of floating chargesunder s314 liquidation automatically renders void any floating charge created within the period of 12 months before
distribution of surplus assetsif the debts are paid in full the liquidator should apply what remains in repayment of capital paid on shares and then
deferred debts - disclaimer of assetsdeferred debtsa debt owed to a member as member ie an unpaid dividend is a deferred debt paid only when ordinary
rules for loan creditorsloan creditors and landlords are subject to special rules in certain circumstancesa if a person usually a bank lends money to
preferential debtsthese unsecured debts which rank ahead of a floating charge and non-preferential debts area one years taxes ie corporation tax paye
order of application of assetsthe order of application of assets is therefore as followsa secured creditors who have fixed charges are entitled to be
unsecured ordinary debtsa secured creditor obtains payment to the extent that his security is adequate ie if it exceeds in value the amount owing to
condition for liquidationthe liquidation itself may render a charge over the companys assets void in any of the following
secured creditorsa secured creditor maya realize his security and prove as an unsecured creditor for the balance if any of his debtbvalue the
general rules on statute-barred debtsa statute-barred debt should be rejected since it is not legally enforceable but in a members voluntary
disclaimer of assetsthe liquidator has a statutory right of disclaimer of assets s135 the rules area he must obtain leave of the
assets in the possession of creditors if the creditor has seized assets in the course of executing a judgement for debt against the company and at
transactions arising in a liquidationin collection in and realisation of assets in order to pay the companys debts and then to distribute any surplus
general principles of calls on contributoriesif it is necessary to make calls on contributories the liquidator draws up a list a of contributories