Extra Flashcards
True or False
A person acting as an insolvency practitioner when not qualified to do so commits a criminal offence
True
Who is responsible for ensuring that the recognised professional bodies deal with insolvency practictioners in a standardised way?
The Joint Insolvency Committee
If a company director, without good caused, fails to answer questions during the course of a private examination, which of the following consequenses are true?
A Prosecution for contempt of court
B A civil penalty for contempt of court
C Automatic disqualification under CDDA
D Automatic public examination
A Prosecution for contempt of court
A creditor with a valid ROT is treated as what type of creditor?
Secured
Can a liquidator in a compulsor liquidation open a local bank account?
Only with permission of the court
Are simple partnerships governed by PA1980 able to create floating charges?
No
Are individuals able to create fixed charges?
Yes
Which two of the following will not be prevented by an Interim Order:
A Execution of a debt by a judgement creditor
B Presentation of a bankruptcy petition
C Repossession of the debtors car subject to HP agreement
D Repossession of goods subject to an ROT
C D
A liquidator has had no response to questions put to director of the Company. Which is the potential consequence?
A the director may be subjected to a private examination
B director ma be prosecuted and fined
C director may dace an accusation of wrongful trading
D director will have to submit to public examination by the creditors
A B
Can the official receiver can be appointed as provisional liquidator?
Yes
Which of the following must be included within the nominees report to creditors?
A copy of the directors proposals
A summery of SOA
Nominees comments on proposal
Copies of last three years audited accounts
A copy of the directors proposals - YES
A summery of SOA - YES
Nominees comments on proposal - YES
Copies of last three years audited accounts -NO
Is there a statutory framework for proving debts in an administrative receivership?
No
Does the administrative receiver had a duty to pay preferential creditors?
Yes
Can the following ask a question in a public examination of a company director?
The official receiver
Any member
A creditor who has proved in the liquidation
A contributory of the company
The official receiver - YES
Any member - NO
A creditor who has proved in the liquidation - YES
A contributory of the company - YES
What percentage by value of the company creditors can compel the Official receiver to apply for a public examination of a liquidator?
50%
Who might appoint a special manager to assist with the conduct of liquidation?
A The Official Receiver
B The creditors
C The liquidator or provisional liquidator
D The court
C the liquidator or provisional liquidator
Which body is responsible for promoting professional and ethical standards for insolvency professionals?
The JIC
Transaction defrauding creditors, will the liquidator have to establish that the Company was insolvency or became so as a result of the transaction?
Is there a time limit?
No and No
Give two reasons why the court would not make an order under S238 Insolvency Act (transactions at undervalue)
The transaction was entered into for the benefit of the Company
The Company was acting in good faith
In an administration which of the following are qualifying liabilities for which the administrator might be liable if he adopts the contracts:
Wages
Contributions to occupational pension schemes
Redundancy payments
Stat. sick pay
Unfair dismissal awards
Wrongful dismissal awards
Wages YES
Contributions to occupational pension schemes YES
Redundancy payments NO
Stat. sick pay YES
Unfair dismissal awards NO
Wrongful dismissal awards NO
If the estranged husband of an undischarged bankrupt brings legal proceedings for financial maintenance the bankruptcy will prevent the order being made?
Yes or No
No
Who can bring an action for wrongful trading?
A Supervisor
B Administrator
C Liquidator
D Administrative Receiver
C Liquidator
True or False - An administrative receiver has statutory powers to manage the Company
True
True or False - An administrative receiver is an officer of the court
False
True or false
On the appointment of an administrative receiver the IA1986 triggers the statutory right of the landlord to forfeit the lease?
False
True or False
In administrative receivership
A landlord may distrain over any property at the premises regardless of whether or not it is charged in favour of another creditor
True
There is no moratorium in administrative receivership and the landlord has a right to distain over goods at the property
A bankrupt owes £25,000 to his wife and £10,000 to her father. In bankruptcy how will these debts be dealt with?
Wife is a deferred creditor
Her father is an unsecured creditor
A trustee in bankruptcy has which of the following powers:
1 to commence legal proceedings
2 to sell any assets within the estate
3 to transfer company shares as the bankrupt would have done
4 to carry on the bankrupts business
1 to commence legal proceedings - YES
2 to sell any assets within the estate - YES
3 to transfer company shares as the bankrupt would have done - YES
4 to carry on the bankrupts business - YES
If a nominee has been appointed by the debtor following a referral by a third party, the source of the referral must be disclosed to creditors - YEs or No
Any referral fee that the nominee paid to a third party must be disclosed to the creditors - Yes or No
Yes
and
Yes
True or false, in an MVL, the liquidator is the agent of the members of the company
True
In respect of the effect of the moratorium that applies on appointment of an administrator can a holder of an ROT repossess goods?
The creditor can repossess goods with a court order
To RESIGN an administrative receiver must give notice to the following, how many days notice should be given:
Companies House
Person who appointed them
Companies House - 14 days
Person who appointed them - 7 days
When instructed to put together a prepack sale, who does the insolvency practitioner act for when acting as advisor?
Directors
Company
Shareholders
Creditors
The Company
Which of the following cannot make a court application pursuant to section 304 against a trustee for misapplied monies which the bankrupt’s estate has suffered a loss as a consequence?
The official receiver
The secretary of state
The bankrupt
The bankrupt’s spouse
The bankrupt’s spouse
Where a company moves from administration to liquidation under para 83 of Schedule B1 of the Act, who of the following does not need to be given notice of the move to liquidation?
The Registrar of Companies
The directors
The Court
The creditors
The directors
How long does the administrator have to submit a statement of affairs to the Registrar of companies?
As soon as reasonably practicable
7 days
14 days
None of the above
As soon as reasonably practicable
