Insolvency (SGSs 24,25)

Question 1

Circumstances in which a company may be wound up by the court

Answer 1

s.122 IA 1986

Question 2

Potential penalties for directors of insolvent companies

Answer 2

s.212 IA 1986

Question 3

Administration statutes are found in

Answer 3

Schedule B1 IA 1986

Question 4

The holder of a qualifying floating charge in respect of a company’s property may appoint an administrator of the company

Answer 4

Para 14, Sch B1 IA 1986

Question 5

Statute for Transactions at an Undervalue

Answer 5

s.238 IA 1986

Question 6

‘Relevant time’ for transaction at an undervalue or preference if connected person is 2 years

Answer 6

s.240(1)(a) IA 1986

Question 7

‘Relevant time’ for transaction at an undervalue or preference if NOT connected person is 6 months

Answer 7

s.240(1)(b) IA 1986

Question 8

Company must have been insolvent or become insolvent as a consequence of the transaction for Preferences and Transaction at an Undervalue

Answer 8

s.240(2) IA 1986

Question 9

Presumption of insolvency if transaction is with a connected person (Transaction at an Undervalue/Preferences)

Answer 9

s.240(2) IA 1986

Question 10

Director risks being struck off for misfeasance

Answer 10

s.6 CDDA

Question 11

Connected Person definition found in this statute

Answer 11

s.435 IA 1986

Question 12

Wrongful Trading

Answer 12

s.214 IA 1986

[or s.246ZB IA 1986 to apply to administrators too]

Question 13

Avoidance of floating charges

Answer 13

s.245 IA 1986

Question 14

Preferences

Answer 14

s.239 IA 1986

Question 15

If Preference can be established, court likely to make restoration order

Answer 15

s.241(1)(d) IA 1986