liquidation

Question 1

when is a members voluntary liquidation initiated?

Answer 1

by the directors of the company when they believe it is solvent

Question 2

what must be in place to wind the company up in voluntary members liquidation?

Answer 2

• sworn stat dec of solvency- 15 days
• ord res or sepc res passed which marks winding up rocess. must be advertised in the gazette within 14 days
• liquidator is appointed by ord res
• liquidiator convenes meeitng within 3 months of commencement to report on his transactions
• final meeting is called upon completion - with laying of liquidators final accounts

Question 3

what happens if they want to make a voluntary liquidation but are not solvent?

Answer 3

creditors voluntary liquidation

Question 4

what is deemed consent?

Answer 4

if less than 10% of creditors by value object the directors choice of liquidator is accepted

Question 5

how long do creditors have to reply once they’ve been told of the companies choice of liquidiator?

Answer 5

3 days

Question 6

when must the process of agreeing/dissenting to the liquidator be complete in?

Answer 6

within 14 days of the res to wind up the company

Question 7

creditors must be sent a statement of the affairs of the company within x working days of decision to wind up

Answer 7

7 working days

Question 8

who can petition the courts for a compulsory wind up?

Answer 8

any creditor that demands payment of a debt of at least £750 that is not paid within 21 days

Question 9

can BEIS peition for the compulsory winding up of a company?

Answer 9

yes

Question 10

what charges/debts are invalidated upon compulsory winding up?

Answer 10

charges not registered within 21 days
transactions at undervalue in the previous 2 years
prefernces given 6 months before or 2 years before for a connected person
floating charges created in the 12 months prior- 2 years if a connectd person

Question 11

what is receivorship?

Answer 11

process by which a companies charges assets are realised and then sold in order to pay off secured creditor who holds the charge

Question 12

who are recievers appointed by?

Answer 12

fixed charge holder or court (in rare circumstances)

Question 13

when can creditors call for personal insolvency?

Answer 13

debt of over 5000
served statutory demand giving 21 days notice on the debtor which has not been paid
they attempted to enforce a judgement order which has not been satisfied

Question 14

what does a bankrupts estate exclude?

Answer 14

• tools of their trade and other items necessary for employment
• clothing and household items necessary for basic domestic needs
• property held by the bankrupt on trust for another
• certain tenancies protected under legislation

Question 15

what may be done to avoid bankrupcy?

Answer 15

iva= allows you to settle claims with creditors over a period of time- say 5 years. once agreed it is binding and they may not petition for bankrupcy BUT they can appeal on the basis of it being predujical or irregularities in creditors meeting