Insolvency Flashcards Preview

1. Law > Insolvency > Flashcards

Flashcards in Insolvency Deck (16)
Loading flashcards...
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

What does creditor need to do before petitioning court for winding up?

- serve written demand to registered office
- co fail to pay w/in 21 days