C10) Insolvency Law

Question 1

An administrator’s appointment is terminated one year after their appointment unless that period is extended, which can only be done by the court. True or False

Answer 1

False , The period can also be extended by a majority vote of the creditors but only once

Question 2

Does the administrator have the power to remove a director? Yes or No

Answer 2

Yes

Question 3

What is an unsecured creditor?

Answer 3

A trade creditor, someone who has lent money or provided a good or service to a company without requiring collateral.

Question 4

Does the administrator have the power to pay unsecured creditors? Yes or No

Answer 4

Yes