Module 3 - Proofs & Proxies

Question 1

3 Reasons to Prove a Debt?

Answer 1

Make a claim in the Liquidation;
Vote in a Decision Procedure;
Become part of the Liquidation Committee

Question 2

Small Debt Limit?

Answer 2

Does not exceed £1,000

Question 3

What is Rule 14.14 for Claims?

Answer 3

Unliquidated Claims - if claim is for unascertained amount, the office holder can put an estimate value to the claim and will adjust it when evidence becomes available of the amount of the claim

Question 4

What is Rule 14.15 of Claims?

Answer 4

A secured creditor can only prove for their claim if they surrender all or part of their security

Question 5

What is Rule 14.20 of Claims?

Answer 5

Discounts - Trade creditors will deduct from any claim, any discounts that would have applied to the contract / transaction had there not been a Liquidation

Question 6

What is Rule 14.25 of Claims?

Answer 6

Set Off - a creditor must set off any mutual debts or dealings, deducting moneys they owed to the Company in Liquidation. Only the balance is provable

Question 7

What is Rule 14.21 of Claims?

Answer 7

Debts in a Foreign Currency - claims for debts in a foreign currency will be converted into sterling on the day the company went into Liquidation

Question 8

What is Rule 14.22 of Claims?

Answer 8

Claims for Rent / those of a Periodical Nature - claim for the amount due and unpaid at the date the Company went into Liquidation. For a landlord claiming the unexpired period of a lease - this is mitigated and subject to a statutory formula (x divided by 1.05^n - n = time left in lease in years)

Question 9

What is Rule 14.23 of Claims?

Answer 9

Interest - provable as part of the debt before the company went into Liquidation. This is paid at stated contractual rate of Judgement Acts rate of 8%

Question 10

Limitation Act 1980 - Statute Barred Debts - what is the time limit?

Answer 10

6 years

Question 11

What is the time limit for a Creditor to appeal a rejected proof of debt?

Answer 11

21 days

Question 12

What is the deadline for Proxy forms to be received?

Answer 12

Date and time of the meeting

Question 13

What is a Specific Proxy?

Answer 13

Gives particular directions on how to vote at a meeting

Question 14

What is a General Proxy?

Answer 14

Give a proxy form a nominated proxy but no instructions on how to vote

Question 15

What is a Continuing Proxy?

Answer 15

Creditor says here’s a proxy form chair of meeting and can be used at any meeting in future

Question 16

What is Section 212?

Answer 16

Misfeasance

Question 17

What is Section 213?

Answer 17

Fraudulent Trading

Question 18

What is Section 214?

Answer 18

Wrongful Trading

Question 19

Remedy for Misfeasance?

Answer 19

Repay, Restore, Account, make a Personal Contribution

Question 20

Define Fraudulent Trading?

Answer 20

Anyone knowingly a party to the carrying on of Business with the intention to defraud Creditors or any fraudulent purpose

Question 21

Remedy for Fraudulent Trading?

Answer 21

Criminal and Civil (RRA or PC)

Question 22

Define Wrongful Trading

Answer 22

A director / shadow director, who knew or ought to have concluded there was no reasonable prospect of avoiding insolvent liquidation or Administration

Question 23

Remedy for Wrongful Trading?

Answer 23

Civil only (RRA or PC)

Question 24

What is the look back period of a CDDA?

Answer 24

3 years

Question 25

When does a CDDA need to be submitted?

Answer 25

Within 3 months of Appointment

Question 26

Which type of cases need to complete a CDDA?

Answer 26

CVL;
WUC (done by OR);
Administrations;
Administrative Receivership;

Question 27

How long can a Director be disqualified for?

Answer 27

Between 2 and 15 years