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