Flashcards in Insolvency Deck (16)
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1
Can a resolution to wind up occur when a company is in administration?
no resolution and no court order to wind up allowed
2
What is the Official Receiver's role?
to realise the charged assets and pay off the appointing chargeholder's debt
3
Who appoints the Official Reciever?
normally, a creditor with a fixed charge
4
Are all creditors bound by a company voluntary agreement (CVA)?
No
preferred and secured creditors are not bound
5
How long does a typical company voluntary agreement last?
3-5 years
6
Do creditors play any part in members or creditors voluntary liquidiation?
No
7
What is a members voluntary liquidation
assumes the debts can be paid in full
8
Who nominates the liquidator?
Directors
not creditor or members
9
Can creditors enforce their debts against bankrupt debtors?
No
Exception: secure creditors
10
Can any creditor petition the court for debtor's bankruptcy?
no, the company needs to be owed min of £5k
11
Floating charges will be void if entered into X before liquidation?
Connected person = 2 years
Non-connected person = 1 year
12
Administrator obtaining statements from e'ees has:
X days to make stmt known to them
X days for e'ee to comply
7 days to make stmt known to them
11 days for e'ee to comply
13
How long is the administration period?
usually a year
can be extended by court or majority of creditors
14
Who can propose a CVA?
director
administrator
liquidator
15
When must declaration of solvency be made?
- no more than 5 weeks before resolution to wind up
- need majority of directors
16
