21: Company law restructuring and insolvency Flashcards
what are the three forms of corporate restructuring?
reconstructions
amalgamations
partitions
what is a reconstruction?
a reconstruction is the separation of all or part of a company to a new person, but there is no real change in person.
what is an amalgamation in corporate restructuring?
bringing together two or more undertakings of separate companies
a takeover is a type of which corporate restructuring?
amalgamation
what are the terms for the separate companies that are brought together within a single company?
separate companies:
single company:
separate companies: participating companies
single company: receiving company
an amalgamation requires the continuity of _ interest
shareholder
during a voluntary arrangement, once the nominee arranges a meeting between the shareholders and creditors to arrange liable debts, once they have agreed to the arrangement, it is a binding agreement between…?
the shareholders and creditors
can the voluntary arrangement be challenged by either the shareholders or creditors?
yes
what is the primary objective of administrator?
to rescue a company as a going concern
what is the secondary objective of administrator?
to advantageously realise a company’s assets for the company’s creditors
what is the tertiary objective of administrator?
to realise the company’s property so as to make a distribution to one or more creditors
what qualification/license must the administrator have?
a licensed insolvency practitioner
once an administrator is set, can a secured creditor secure their charges and can an unsecured creditor enforce their debts?
not without court permission
what does it mean for a business to be insolvent?
they do not have sufficient assets to meet their liabilities
what are the three types of liquidation?
compulsory liquidation
members voluntary liquidation
creditors voluntary liquidation