Multiple choice/short questions Flashcards

Question

When a moratorium comes into force prior to the calling of decision meetings to approve a Company Voluntary Arrangement the Nominee is required to advertise the fact that a moratorium is in force. When must the Nominee place this advertisement?

Answer 1

As soon as is reasonably practicable

Answer 2

- Company should be wound up by the members - Declaration of solvency - That a general meeting of the company’s members should be called - Director to chair GM - Notice of the proposed liquidation be given to any QFCH - Distribution in specie

Answer 3

Declaration must contain a sworn statement by the directors that: - They have made full inquiry into the company’s affairs; and - They have formed the opinion that the company will be able to pay its debts in full plus interest within 12 months from the commencement of the winding up. - The declaration must include a statement of the company’s assets and liabilities - The declaration must be made within 5 weeks immediately preceding the date of the passing of the resolution for winding up.

Answer 4

POF GOONS - Post bankruptcy order debts - Obligation arising under a confiscation order made - Fine imposed for an offence - Gaming debts - Obligation (other than obligation to pay a lump sum or costs) arising under an order made in family proceedings - Obligation arising under a maintenance assessment made under Child Support Act 1991 - Non-EU tax claims - Statute barred debts after six years

Answer 5

- OH remuneration, showing sums paid on each basis - amounts paid to OH out of the estate for pre-appointment costs - amounts paid to OH in respect of supervision of trading - All other amounts required to be approved in the same manner as remuneration - amounts paid to sub-contractors for work that would otherwise have to be carried out by the OH or their staff - Any remuneration /disbursements paid to the OH other than out of the estate, with amounts paid, name of the payer, its relationship to the insolvent estate and the nature of the payment

Answer 6

Avoidance of floating charge and misfeasance

Answer 7

- The advantages and disadvantages of each available option to the debtor - The key stages and roles of the adviser / nominee / supervisor - Any potential delays or complications - Likely duration of the IVA - What is required of the debtor - The consequences of proposing and entering into an IVA - What may happen if the IVA is not approved or not successfully completed

Answer 8

- The partnership is automatically dissolved - The bankrupt’s share in the partnership vests in the trustee on appointment - The deed often provides for expulsion of the bankrupt partner and some mechanism for valuing and buying out of the bankrupt’s share by the other partners - If no such buy-out provision the trustee may bring proceedings against the firm to realise the bankrupt’s interest in the partnership

Answer 9

- Duty to insure - Duty to keep property in repair - Power to collect rent and income

Answer 10

c. Costs directly referable to the appointment

Answer 11

(b) The amount of any fee estimate (if any given)

Answer 12

(b) The company’s last three years’ audited accounts

Answer 13

Schedule 1

Answer 14

- All proofs must be dealt with within 5 business days from the last date of proving. - If the Liquidator rejects a proof… - in whole or in part… - He shall prepare a written statement of his reasons for doing so… - and send it to the creditor… - as soon as reasonably practicable

Answer 15

- The Bankrupt - The Bankrupt’s spouse/civil partner (including former spouses/civil partners) - Any person known or believed to have any property comprised in the Bankrupt’s estate in her/his possession/indebted to the bankrupt. - Any person appearing to the court to be able to give information concerning the Bankrupt or the Bankrupt’s dealings, affairs or property.

Answer 16

- Simple clause - stipulates that the supplier has retention of title over goods supplied under a specific invoice, until that invoice has been paid in full. - All monies clause - this clause will stipulate that all goods supplied by the supplier remain the property of the supplier until all sums due to that supplier are settled in full. - If the purchaser has, at any point, cleared the account with that supplier down to nil, title of all goods purchased prior to that date passes to the purchaser.

Answer 17

- that, on the grounds existing at the time the order was made, it ought not to have been made - that, to the extent required by the Rules, the bankruptcy debts and expenses have all, since the making of the order, been either paid or secured for to the satisfaction of the Court

Answer 18

- Is any negotiation possible with chargeholder? - What are reasons for refusal? Concerned if a shortfall arises? - Consider preparing EOS to address any concerns - If negotiation not possible, then the ADM has recourse to Para 71, Sch B1 IA - Under this, ADM can apply to Court for an order enabling him to dispose of property subject to a fixed charge as if it were not subject to the charge. - Court may only make order where satisfied that disposal of the property would be likely to promote the purpose of the administration. - Net proceeds of disposal must be applied towards discharge of the security – including any additional amount the Court considers to be necessary in order to achieve what it thinks ought to be market value.

Answer 19

whether: - the company’s financial position is materially different from that contained in the proposal, - the CVA is manifestly unfair; - the CVA has a reasonable prospect of being approved and implemented. - proposer understands the impact of the modifications on the implementation of the CVA and its viability; - where modification is adopted, that consent has been obtained from the proposer of the CVA and if appropriate the creditors - The likely outcome if the proposal is rejected - History of other failures - view of major creditors - Attitude and Co-op of directors - Any transactions better pursued in Liquidations

Answer 20

R22.4 IR 2016: this is the first excepted case to s216 prohibition. Directors acquiring the insolvent business may re-use the prohibited name if they give notice: - to all creditors of the insolvent company - in the Gazette - this notice can be given before completion of the sale, but must be within 28 days of completion, if not the notice must state: - name and registered number of the insolvent company - names of the directors - intention of the directors to trade using the prohibited name - what the prohibited name is.

Answer 21

14 days prior to the expiry of the 3 year period under S283A

Answer 22

- Unprofitable contract - Unsaleable or not readily saleable property - Property that may give rise to a liability to pay money - or perform any onerous act

Answer 23

(c) A person to marshal all or part of a secured debt against another person, thus increasing their own share in the equity

Answer 24

Where the Bankrupt has, at a relevant time: - Made a gift to another person or enters into a transaction: - that provides no consideration - in consideration of marriage or civil partnership with a person - for significantly less consideration than they ought to have received

Answer 25

s251L(2) - Information supplied (either in or in support of the application, or after the determination date) was incomplete, incorrect, or otherwise misleading - Debtor has failed to comply with a duty under s251J - Debtor has been adjudged bankrupt - Debtor has made, or notified intention to make, an IVA proposal

Answer 26

Yes – but only up to a limit of £200

Answer 27

S.313 (2A): • The value of the Trustee’s interest in the property at the date of the s313 order • Interest on that amount from the date of the Charging Order at the prescribed rate

Answer 28

SIDS Deer Stalker * Statement of the decision date * If creditor who has opted out of receiving notices can still vote * Description of the decision procedure * Statement of when a proof must be delivered * Details of the decision to be made * Statement that 10% of the creditors may, within five business days from the date of delivery of the notice require a physical meeting

Answer 29

S.290(4): • The Official Receiver • The Trustee of the Bankrupt’s estate, if his appointment has taken effect • Any person who has been appointed as special manager of the Bankrupt’s estate or business • Any creditor of the Bankrupt who has tendered a proof in the Bankruptcy

Answer 30

On first £5,000 or fraction thereof 10% On the next £5,000 or fraction thereof 7.5% On the next £90,000 or fraction thereof 5% On all further sums distributed 2.5%

Answer 31

S48(1): • The events leading up to his appointment, so far as he is aware of them • The disposal or proposed disposal by him of any property of the company and the carrying on or proposed carrying on by him of any business of the company • The amounts of principal and interest payable to the debenture holders by whom or on whose behalf he was appointed and the amounts payable to preferential creditors • The amount (if any) likely to be available for the payment of other creditors

Answer 32

PLANT Big Nobbly Cacti * Persons to receive the notice * Last date under which the notice can be issued * Address of the property in question * Name and address of Trustee * Title number of the property * Bankruptcy order date * Name of Bankrupt * Court details

Answer 33

* Include monies provided by third parties towards the costs and expenses of the liquidation in your bond calculation * The Liquidator should therefore bond for £8,000

Answer 34

• Any time arrears of contributions equivalent to three months or more of contributions proposed • Debts and liabilities exceed by 15% or more the figure estimated for the proposal • False or misleading information was provided to obtain the IVA • Significant omissions in the information provided for the IVA • Failure to do anything that the Supervisor reasonably asks for the purposes of the IVA • Failure to comply with any obligation under the IVA

Answer 35

The middle exchange rate on the London Foreign Exchange Market at close of business on the relevant day

Answer 36

Imprisonment or a fine, or both

Answer 37

Satisfied that the company is, or likely to become, unable to pay its debts considers that the making of an order is reasonably likely to achieve the purpose of administration (para 11 Sch B1).

Answer 38

Where the Net Property is less than £10,000 £50% of the Net Property Where the Net Property exceeds £10,000 50% of the first £10,000 plus 20% of the property that exceeds £10,000 up to a maximum prescribed part of £600,000.

Answer 39

–Made all payments required by the debtor under the IVA - Fully explained any breach of the IVA as required by the Supervisor - Paid the Supervisor any sum that they have reasonably requested to compensate creditors for any reduction in dividend caused by the debtor’s breach of the IVA

Answer 40

- Amount of the debt(s) equal to or exceeds £5,000 - The debt(s) are for a liquidated sum payable to the petitioning creditor immediately or at some certain, future time - The debt(s) is/ are unsecured - The debtor is unable to pay the debt or has no reasonable prospect of being able to pay - There is no outstanding application to set aside a statutory demand served on the debtor in relation to the debt(s) s267(2) IA 86

Answer 41

- By a notice sent by the Supervisor to creditors for an initial six month extension period. - By a notice sent by the Supervisor to creditors for a further three month extension period. - If a creditors meeting is called for a date after the IVA will have expired, the IVA is extended to cover the meeting date and any adjournment. - Where exceptional income not disclosed by the debtor, the term of the IVA may be extended by up to six months to recover any sums due. - By agreement of creditors at a variation meeting.

Answer 42

- The circumstances leading to the Bankruptcy. - A summarised account of the extent of the Bankrupt’s assets and liabilities at the date of the bankruptcy order and date of the annulment application. - Details of any creditors known to the Trustee who have not lodged a claim in the bankruptcy. - The Trustee’s remuneration. - Basis fixed for the Trustee’s remuneration. - Expenses incurred by the Trustee. - The extent to which the debts and expenses have been paid or secured and whether the security is satisfactory. - Any other matters as considered necessary for the information of the court.

Answer 43

Contents of chair's report - Wario's REALM - Was the proposal for an IVA approved or rejected. - Resolutions taken at the meeting and the decision on each one. - EC Regulations - if they apply and if they do, main, secondary or territorial proceedings - Any other information that is appropriate to make known to creditors and/or the Court. - List of creditors with their respective values who were present or represented at the meeting and how they voted on each resolution - Modifications to the proposal - what were they Time limits Notice to be sent as soon as is reasonably practicable after a copy of the report is filed at Court (where Interim Order is in place). Four business days of the meeting being held (where no Interim Order is in place).

Answer 44

MCAT SANDS - Make out a statement of affairs in the prescribed form as to the affairs of the company. - Cause that statement to be laid before the creditors’ meeting. - Appoint one of their number to preside at that meeting. - The director so appointed attends the meeting and presides over it. Contents of statement: - securities held by creditors - assets, debts and liabilities - particulars of - names and addresses of company’s creditors - dates when the securities were given - such further or other information as may be prescribed

Answer 45

Schedule 6 IA 86 - Any sum due in respect of occupational pension schemes. - Remuneration of employees in preceding 4 months. - Holiday pay. - Sums advanced to pay employees that would otherwise have been a preferential debt. - Levies on coal and steel production.

Answer 46

To get in, realise and distribute the company's assets to its creditors and, where there is a surplus, to the persons entitled to it If the Liquidator is a person other than the Official Receiver, he must also: - furnish the Official Receiver with information - produce to/permit inspection by the Official Receiver books and records - give the Official Reciever assistance as the Official Receiver may reasonably require for the purposes of carrying out his functions in relation to the winding-up

Answer 47

Debtor is allowed a payment break of up to 6 months once during the term of the IVA without any modification being required at the discretion of the Supervisor. The term of the IVA will be extended by the length of the payment break so that the debtor will make the same number of contributions as agreed in the original proposal. The debtor cannot already have had a payment break and must not already be in breach of the terms of the IVA in other ways and should provide to the Supervisor documentary evidence of the item of expenditure in any event. Supervisor shall, if necessary, review the position at the end of the break.

Answer 48

The Court must be satisfied that: the company is, or is likely to become, unable to pay its debts and that the Administration Order is reasonably likely to fulfil the purpose of the Administration (both Para 11, Sch B1).

Answer 49

- To sell any part of the property comprised in the Bankrupt’s estate, including goodwill and book debts of any business - To refer to arbitration or to compromise debts, claims or liabilities owed by another person to the Bankrupt - To make a compromise or other arrangement with regard to claims or potential claims against the Trustee arising out of the Bankruptcy estate - To prove debts and receive dividends in respect of claims in other insolvency proceedings arising from debts owed to the bankrupt - To exercise statutory powers in the IA relating to the Bankrupt’s estate

Answer 50

- Inform Supervisor of notice of redundancy within 14 days - regardless of whether he has received, or expects to receive, any redundancy payment - Inform Supervisor of amount of any redundancy payment within 14 days - Pay Supervisor within 14 days of receipt of any redundancy payment - any amount above 6 months net take home pay (as set out at the last annual review date) - If no amount above 6 months net take home pay no payment is required - Where possible continue to make monthly contributions to the IVA as set out at the last annual review date - Keep Supervisor informed of any changes in employment status - If unable to make contributions the Supervisor will review the matter - When new job obtained the Supervisor will review IVA contributions - at that point there will be an expectation that any remaining redundancy funds will be paid into the IVA - performance in this regard will be reported to creditors - if the debtor fails to disclose an entitlement to a redundancy payment, this is considered to be a breach of the IVA

Answer 51

NITRIC USD - Name, address and authority of any person authenticating the claim, if not the creditor personally - If creditor is a company, its registered number - Total amount of claim including VAT less any discounts that would have been available but for the insolvency - Retention of title over goods to which the debt refers - Incurred debt - how and when - Creditor’s name and address - Uncapitalised interest, if claim includes any outstanding - Security - any held, date given and value - Documents evidencing the claim should be specified

Answer 52

IP Practitioners Regulations 2005

Answer 53

Administrative Receiver

Answer 54

Power to bring legal proceedings for a TUV or a Preference

Answer 55

Execution - This is creditor action whereby an individual or corporation owed money by a company takes formal court action against that company.. - the court action is successful and a judgement is made against the company - Execution is the enforcement of that court judgement, often by a court official called the High Court Enforcement Officer - or it can be taken by the creditor themselves. - The HCEO or the creditor can enter the premises if the company and take 'walking possession' over assets or goods physically on the premises - which are not privileged (for example, belonging to a third party or electronically turned on) - available to any creditor of the company

Answer 56

- a party can raise a defence if they took every step to minimise potential loss - Statute does not state that this should be 'every reasonable step' but it is interpreted as meaning this - An example of a 'step' that should be taken is to minimise outgoings and deal only in cash

Answer 57

The Administrator should first consider whether the sale of the business will meet statutory purpose of Administration Valuation - The Administrator should obtain a valuation of the business from an independent agent on both a going concern basis and a break up basis Advertise - The sale of the business should be advertised in at least two papers or publications MBO - Consider whether the existing management team would be interested in buying the business Property matters - Consider whether there are any fundamental issues with the property e.g. health and safety or issues with landlord such as him not consenting to a sale Insurance - Ensure that appropriate insurance is in place Realistic chance of sale - The Administrator should consider whether the sale is realistic and if not should consider closing the business and sell assets at public auction Environmental matters - Have an environmental report carried out to ensure there are no environmental issues Secured creditors - Identify assets subject to fixed charges and ensure that the fixed charge holders agree to a sale of the assets

Answer 58

San Francisco VEHICLES Licences - Are any specific licences required for this type of business in order for it to trade Finances/Cashflow - Is trading financially viable? Have cashflow projections prepared - can you obtain an overdraft to allow trading or an indemnity from the bank? Security - Ensure the business premises are secure and take custody of all sets of keys Environment - Consider environmental risks of trading the business - Consider getting an environmental report carried out Health and Safety - Consider all health and safety risks involved in trading the business and consider having a health and safety check carried out. Employees - There needs to be sufficient employees in order to trade the business. Check if there is any arrears of wages and if they are willing to co-operate Insurance - Ensure there is adequate insurance in place for the business and if there is not obtain open cover insurance Valuation - At the earliest opportunity obtain a valuation of the business as a going concern Stock-take - Carry out a stock take to ensure you have sufficient stock and you can ensure stock levels remain consistent Customers/Suppliers - Are there any customers or suppliers who are owed money that are fundamental to the trade of the business - Will they continue to supply

Answer 59

- The administrators’ proposals - Any major amendments or deviation from, those proposals - The steps taken during the administration - The outcome

Answer 60

``` − Notice of Intention to appoint an administrator − Notice of Appointment of administrator − Board meeting minutes − General Meeting minutes? − Resolutions of GM? − Consent to Act − Notice to QFC − Statutory Declaration with Notice of Intention − Statutory Declaration with Notice of Appointment − Administrators’ statement − Para 100 statement − Evidence of QFC consent ```

Answer 61

Para 51 (1) IA 86 The above shall not apply where the statement of proposal states that the Administrator thinks: − That the company has sufficient property to enable to each creditor of the company to be paid in full − That the company has insufficient property to enable a distribution to be made to the unsecured creditors, other than by virtue of section 176 (2) (a) − That neither of the objectives specified in para 3(1)(a) or para 3(1)(b) can be achieved. But The Administrator shall summon an initial creditors decision if it is requested by 10% of total creditors.

Answer 62

As soon as reasonably practicable: − Advertise his appointment in the London gazette… … and any other manner he thinks fit Give notice of his appointment in the prescribed manner to: − The Company − The creditors of whose claims and addresses he is aware − Any Receiver or Administrative Receiver who has been appointed − Any Court Enforcement officer, who to the Administrator’s knowledge is charged with execution or other legal process other the company − Any person who to the Administrator’s knowledge has distrained against the company or its property − Any Supervisor of a CVA Send notice of appointment to the Registrar of Companies within 7 days of receiving the sealed copy of the notice of appointment from the appointer.

Answer 63

Check that the ROT clause is valid and has been incorporated into the contract. Request copies of all documentation: orders, invoices, ROT clause To be incorporated an ROT clause must have been agreed before completion of the contract, it must not amount to an unregistered charge Take legal advice as necessary (regarding the validity of the claim) Identify the stock subject to the ROT claim (with the supplier as necessary) Check what sums are still outstanding and reconcile with inventory of assets Ensure stock is kept secure until ROT claims resolved.

Answer 64

Factors In order to move from Administration to CVL the secured creditors and preferential creditors have been paid or funds have been set aside… … and the company has sufficient property to allow a distribution to unsecured creditors … …above the Prescribed Part Advantages − It is cheap and cost effective as there is no need to hold a section 100 Decision − A liquidator has better investigative powers eg 212 − Not restricted by one year time limit − Distribution can be made to unsecured creditors without court permission. − Liquidator has broader powers to disclaim onerous assets and an administrator has no such powers

Answer 65

The arrangement prejudices the interest of a creditor, member or contributory There has been a material irregularity in relation to either of the meetings

Answer 66

a) - Annulment does not release the trustee - remains liable to account for all actions in respect of bankruptcy estate - only released at the Court’s discretion b) - Discharge does not bring the bankruptcy to a close - trustee is not released until he has finished administering the estate - Assets remain vested in the trustee and his duties continue

Answer 67

A decision approving a proposal or a modification A decision extending or further extending a moratorium A decision bringing a moratorium to an end before the end of the period of any extension

Answer 68

Power to take possession and sell the property Power to borrow money to carry out statutory duties Power to trade or manage Power to deal with employees Power to raise or borrow money Power to appoint solicitors and other agents Power to retain out of money received his reasonable remuneration Power to do all such other things reasonably and property necessary for realising the property

Answer 69

CRAMMED APE - Carry out ongoing monitoring of business relationships - Report suspicious of money laundering to the National Crime Agency - Assess individual risk of money laundering (high, medium, low) - Maintain records of client identification and of business relationships for at least 5 years - Maintain a continuing obligation to review - Establish procedures to identify the directors and verify their identities - Determine those with a controlling interest in the company - Appoint a nominated office Money Laundering Officer to whom principals and employees must make money laundering reports - Provide relevant training on money laundering to staff - Establish internal systems, procedures, policies and controls to prevent money laundering

Answer 70

Power to apply to Court for an order in respect of transactions defrauding creditors Power to present a bankruptcy petition Power to apply to Court for directions Power to apply to Court for the transfer of cases

Answer 71

- The purposes for which the Statement is to be used, as stated in the Act

Answer 72

The time limit for applications is within 28 days of filing of the chair’s report on the meeting with the court or date issued to creditors (in a case where there is no Interim Order)

Answer 73

(b) No possession proceedings may be commenced against the debtor’s property by a mortgagee

Answer 74

(b) 2 years immediately preceding a Bankruptcy petition

Answer 75

(b) 14 business days

Answer 76

- Immediately following appointment OH should ascertain the location of, secure, and list all of the company’s books and records. - OH should invite creditors to provide information on matters of concern/assets - at the meeting of creditors at which the OH is appointed (liquidation)… - at the Para 51 first meeting of creditors in Administration… - at any subsequent meeting of creditors - in the first communication sent to creditors. - members of the creditors committee should also be invited - Inquiries should be made of directors and senior employees – questionnaire or interview - Irrespective of available funds, the OH should consider all available information in connection with the company and decide if further information is required or appropriate

Answer 77

- that on the grounds existing at the time the bankruptcy order was made, the order ought not to have been made - that the bankruptcy debts and expenses have, since the making of the order, been paid or secured for to the satisfaction of the court. l.

Answer 78

within 1 month of the expiry of the first 6 month period after the commencement of the administration within 1 month of the expiry of each subsequent 6 month period of the administration or one month from date of a previous administrator ceasing to act when replaced and then witin 1 month of expiry of every 6 month period thereafter

Answer 79

Supervisor has the discretion to admit - claims of £1,000 or less - claims submitted that do not exceed 110% of the amount stated by the debtor in the proposal ...without the need for additional verification.

Answer 80

Liq needs sanction from creditors’ Committee/Secretary of state to commence legal proceeding under s239 - Must also request authority from each floating charge creditor who is likely to suffer a shortfall as a result of the proposed action. - Request must be in writing - Liquidator has recourse to Court where the floating charge creditor is or is intended to be the defendant to the proceedings - or the floating charge creditor either: - refuses authorisation - grants it in an amount that is insufficient - or makes a request for further information which the Liquidator considers to be unreasonable

Answer 81

Court may do one or both of the following: - revoke or suspend any decision approving the CVA - or in the case of a material irregularity, any other decision taken at the meeting of creditors give a direction to any person for the summoning of further meetings: - to consider a revised proposal - or in the case of a material irregularity, a further meeting of the company or creditors to reconsider the original proposal Court will revoke any direction to summon meeting to consider a revised proposal where it is satisfied that the person making the original proposal has no intention of making a revised proposal

Answer 82

- Wind up the partnership only as an unregistered company - Wind up the partnership with simultaneous bankruptcy petitions against one or more insolvent members - Individual insolvency proceedings against all members of the partnership without any action against the partnership itself - Individual insolvency proceedings against one or more members only, without including the remaining members or any action against the partnership itself.

Answer 83

- Qualifying debts ( liquidated, payable immediately or at a specific future date, and not excluded or secured) of less than £20,000 - Assets of less than £1,000 (excluding a car worth less than £1,000) - Monthly disposable income of less than £50 - Unable to pay debts - No previous DRO within last 6 years - Not a homeowner

Answer 84

- another member of the Committee - anyone who is at the same time representing another Committee member - a body corporate - a person who is an undischarged Bankrupt or subject to a DRO moratorium - a disqualified director - a person who is subject to a BRO, including an interim BRO, a BRU, a DRRO or DRRU - any person claiming to be a member’s representative who cannot produce his letter of authority or whose authority appears to the chair of the relevant meeting to be deficient

Answer 85

- Must call a first meeting to take place within 6 weeks of Committee’s establishment - Must call subsequent meetings within 21 days of receipt of a request for one from a member - or on a specified date, if the committee has previously resolved that this should happen - Must give 5 business days’ written notice of venue of meetings to Committee members (or their representatives) unless this has been waived by members - Other than this, Administrator shall hold meetings at times and locations he determines. - Must also act as chairman of committee meetings unless he appoints another IP or experienced member of staff to act as chair

Answer 86

- OH must send a copy of the proposed resolution to all members - and must set it out in such a way that agreement or dissent can be indicated by the recipient on the copy resolution sent out - any committee member can require OH summon a meeting of the committee to consider matters raised by the resolution - but must do so within 7 business days of the date on which the resolution was sent out - If no meeting is requested, resolution is deemed passed by members when OH receives written notification that a majority of members concur with it - OH must keep a copy of every resolution passed and note the Committee’s concurrence

Answer 87

d) As soon as reasonably practicable

Answer 88

b) Physical meeting

Answer 89

b) Within 21 days of becoming aware of the asset’s existence

Answer 90

- statement that the office holder intends to declare a dividend within two months of the last date for proving - statement as to whether it is an interim or final dividend - the last date for proving which must be at least 21 days from the date of the notice - statement of the place to where proofs should be delivered

Answer 91

Official Receiver - Trustee - Liquidator - Administrator - Supervisor if a victim is bound by the voluntary arrangement - A victim of the transaction (leave of the court is required if the debtor is bankrupt or in liquidation or administration)

Answer 92

- Notice of the decision procedure/virtual meeting - Blank proxy - Copy of the proposal - Copy of the statement of affairs, or a summary including a list of creditors with the amounts of their debts - Estimated outcome/ comparison statement - Copy of the nominee’s report on the proposal - Nominee’s comments - Notice re requisite majorities - Creditors’ guide to IP’s fees - Claim form - Notice re opting out of receiving documents

Answer 93

- The OR - The trustee (if other than the OR) - A special manager - Any creditor who has tendered proof

Answer 94

- The creditor may apply to the court for the liquidator’s decision to be reversed or varied - The application to court must be made within 21 days of the creditor receiving the rejection of his claim - The creditor must deliver to the liquidator, notice of venue of the application hearing, once fixed by the Court

Answer 95

VH HI FI DID NUN - Verified company name against Companies House info - Have the individuals/directors fully disclosed details of their identity - Have you met individuals/directors face to face or are they refusing to meet you and want to operate through a third party - Is the business mostly cash-based (eg betting shop) - familiar with the business activities? - Is the business involved in high risk activities - Does the company/business operate in a high-risk country (check list) - Is the individual/director a PEP - Directors want to pay you in cash - No books and records or available records don’t support directors’ explanations re trading activities - Unexplained trading profits - No explanation for sources of cash

Answer 96

- Creditors representing 25% in value of all the company's creditors can ask the liquidator to call a meeting to vote on his own removal - The basis of the liquidator’s fees be fixed on basis preferred (rates to be provided at meeting) - The liquidator be authorised to draw “Category 2” disbursements, details provided at the meeting - Ordinary resolutions therefore 50%

Answer 97

- Negotiate agreement with creditors - Debt reorganisation or consolidation loan - Remortgage of property - Sale of non-essential assets - Support from family/other third parties - Debt management plan

Answer 98

Decanters DECOCT Badly - Do all things which may be necessary for the protection of the company’s assets - Do all other things incidental to the performance of the functions and power of the PL - Employ accountants, lawyers and other persons and do all things necessary which the PL may consider expedient in connection with the above - Conduct investigations and obtain information as may be required to enable a liquidation to proceed in a speedy and efficient manner - Open or maintain such bank accounts as they consider expedient and to authorise payments out of the company’s bank account - Carry on the business of the company including employing, retaining or dismissing employees - Take possession of, collect and get in all property and assets - Bring or defend any action or other legal proceedings in the name and on behalf of the company

Answer 99

may occur as a result of the financial or other interests of a practice or an Insolvency Practitioner or of an immediate or close family member of an individual within the practice

Answer 100

may occur when a previous judgement made by an | individual within the practice needs to be re-evaluated by the Insolvency Practitioner

Answer 101

may occur when an individual promotes a position or opinion to the point that subsequent objectivity may be compromised

Answer 102

may occur when, because of a close relationship, an individual within the practice becomes too sympathetic to the interests of others

Answer 103

which may occur when an Insolvency Practitioner may be deterred from acting objectively by threats, actual or perceived

Answer 104

An insolvency practitioner should be straightforward and honest in all professional and business relationships

Answer 105

An insolvency practitioner should not allow bias, conflict of interest or undue influence of others to override professional or business judgement.

Answer 106

An insolvency practitioner has a continuing duty to maintain professional knowledge and skill at the level required to ensure that a client or employer receives competent professional service based on current developments in practice, legislation and techniques

Answer 107

An insolvency practitioner should respect the confidentiality of information acquired as a result of professional and business relationships and should not disclose any such information to third parties without proper and specific authority unless there is a legal or professional right or duty to disclose

Answer 108

An insolvency practitioner should comply with relevant laws and regulations and should avoid any action that discredits the profession

Answer 109

(d) A maintenance assessment lump sum award

Answer 110

(b) The company’s last three years’ audited accounts

Answer 111

SAPIS - State that all relevant documents will be made available for viewing and downloading on a website - Address of the website - Password necessary to view and download documents from the site - Include a notice that any person to whom notice is given may at any time request hard copies of all or specific relevant documents - Specify tel number, email address and postal address which may be used to make request

Answer 112

- Trustee’s remuneration must be fixed by creditors Committee or a decision procedure of creditors within 18 months of the appointment of the Trustee - If not fixed within 18 months remuneration will be fixed as follows: - applying realisation scale to monies received from the realisation of assets of BKY — then by by applying the distribution scale to the value of assets distributed to creditors of the Bankrupt

Answer 113

A company is an associate of another company: - if the same person has control of both - a person has control of one and his associates, or he and his associates have control of the other

Answer 114

- Occupation of premises for purpose of seeking sale of biz as a GC would be considered occupation for the beneficial conduct of the Adm - Consequently rent and rates incurred during period of occupation will constitute a ‘necessary disbursement’ and those payments will be payable as an expense of the Administration - Principle was confirmed in the cases of Game Stores Group and Re Atlantic Computer Systems - Administration expenses are paid in the priority set out in Rule 3.50 and will rank above other creditor claims - ‘Rent’ includes other sums such as service charge and insurance that may be due under the terms of the lease - Any rent or rates due before the company entered Administration or after the Administrator ceased to occupy the premises will not rank as expense but as an ordinary unsecured debt

Answer 115

Notifications - Liquidator will place a notice in the London Gazette and any other manner he deems necessary within 14 days of the appointment - Notice of the appointment will go to the Registrar within 14 days. - A copy of the SOA will go to the creditor and contributories within 28 days and to the Registrar within 5 days - A note that the company is ‘In Liquidation’ is placed on all documentation, as well as the company’s website Position of the Directors - The directors’ powers cease on the appointment of the Liquidator but their duties continue until their position is terminated Action - In a Creditors’ Voluntary Liquidation actions are not automatically terminated; the Liquidator will have to apply to the court to end them.

Answer 116

- clothing, bedding, furniture, household equipment and provisions necessary for satisfying basic domestic needs of the Bankrupt and family - Property held by the Bankrupt on trust for any other person - Personal correspondence (Haig v Aitken). - Titles of honour. - Compensation claims for pain and suffering or injured feelings. - Interest in an approved pension scheme. - Items not vested in the Bankrupt at commencement.

Answer 117

— the debtor — any of his creditors — any other person who is dissatisfied by any act, omission or decision of the Supervisor the court may — Confirm, reverse or modify any act or decision of the Supervisor — Give directions — Make any such other order as it thinks fit — The court may also appoint another person qualified to act as Supervisor either in substitution for the existing Supervisor or to fill a vacancy

Answer 118

- the company has sufficient property to enable each creditor of the company to be paid in - that the company has insufficient property to enable a distribution to be made to unsecured creditors other than by prescribed part - that neither of the objectives specified in paragraph 3(1)(a) and (b) can be achieved

Answer 119

- date the CVA took effect - a summary of all receipts and payments in relation to the CVA - explanation of any departure from the original terms of the CVA - if the CVA has terminated, the reasons why - a statement as to the amount paid to any unsecured creditors by the prescribed part

Answer 120

- Before declaring dividend OH must give notice to all creditors who are known to him and have not proved their debts of intention to declare and distribute a dividend - Notice to be given by public advertisement (Gazette) Unless creditors previously invited by Gazetted notice to prove debts - Must specify a last date for proving (not less than 21 days from the date of the notice) - Officeholder must deal within 5 business days from the last date for proving

Answer 121

- Bankrupt has the right against the Trustee not to be evicted if in occupation (without leave of the court). - If not in occupation a right to enter the dwelling house. - Trustee can make an application to court for leave to evict the Bankrupt - Court will do what is just and reasonable, having regard to the interests of the creditors

Answer 122

- Written notice must be given to the Bankrupt - Notice must be served within 42 days of the Trustee first became aware of the property - Can only be longer with leave of court

Answer 123

- Making of declaration without reasonable grounds is an offence - culpable director will be liable to fine, imprisonment or both - If a company becomes insolvent after being placed into MVL it will be presumed that the statutory declaration was not made on reasonable grounds - The company will then be placed into insolvent Liquidation.

Answer 124

Equitable exoneration occurs when one party has charged their share of the matrimonial home for the benefit of the other In the event of a sale of the property, the debts must be allocated to the relevant equity share in accordance with the benefit received

Answer 125

- A 2nd mortgage on the property was used to fund the husband's business - As the wife could prove she did not benefit from the funds and had her own independent source of income, the loan was applied to the husband's share of the equity first and the wife effectively became surety for any shortfall

Answer 126

- As a percentage of the value of assets realised or distributed, or of both in combination - By reference to time properly given by the IP and his staff in attending to matters arising - A set amount - A combination of the above bases

Answer 127

Top row: Harry's Pilot Met Other Airmen Travelling To America ``` Hours (title) Partner Manager Other senior professionals Assistants and support staff Total hours Time costs Average hourly rate ``` First column: Counting Avalanches In Remote Chalets Cures Truly Troubling Tremors ``` Classification of work function (title) Administration and planning Investigations Realisations of assets Case specific matters Creditors Trading Total hours Total fees claimed ```

Answer 128

Posh Venture Capitalists Persistently Act Childish Indoors - prepare SOA within 7 days of forming the opinion - verify SOA with statement of truth - convene decision procedure of creditor to take place within 28 days of forming the opinion - provide creditors with minimum of 7 days notice of th decision procedure - advertise decision procedure in the gazette and any other manner in which he sees fit - consider if any conflict prevents them from acting as CVL Liquidator, consider resignation - if he believes that the directors had no reasonable grounds to swear the declaration of solvency, report them to the crown prosecution service

Answer 129

- Details of assets sold - Consideration paid... terms of payment - Valuations obtained of the assets and business - Options considered by the administrator and the financial outcomes - Trade in the circumstances? No... offer for sale as going concern - Efforts to consult major creditors - Requests to potential funders for working capital - Buy-back arrangements attached to sale contract Relationship between purchaser and directors, shareholders or secured creditors of the company - Identity of the purchaser - Names of the directors who are involved in the management or ownership of the purchaser - Guarantees given from directors for amounts due from the company to a funder - Source of the Administrator's initial introduction - Marketing activities undertaken by company/Administrator - Extent of the Administrator's involvement pre-appointment - Date of transaction - Sale a part of wider transaction? Details of the other parts - Pre-pack pool, whether consulted - Viability statement, whether provided - Charges, details of

Answer 130

- Investigation into affairs - Valuation basis for assets and liabilities - Attitude of debtor - Secured creditors cooperation - Approval - estimated result for creditors - Re a Debtor - Greystoke v Hamilton-Smith tests - Extent debtors estimates relied upon - Source of referral - History of previous failures - Other options - Rejection - likely outcome - Transactions best pursued in Bankruptcy

Answer 131

- Property not owned by company to be included in VA - Preferential creditors - how they will be dealt with - Further credit facilities to be arranged and how to be paid - Business - how it is to be conducted - Funds - how they are to be held during VA - Functions to be undertaken by Supervisor - Duration proposed for VA - Any guarantees or security that are to be given for purposes of the VA - Dates proposed for distributions to creditors - Supervisors' joint appointment statement - Liabilities - nature and amount - Identification and contact details of Supervisor - Charged assets, extent of - Excluded assets, extent of - Nominee's remuneration - Connected parties - how they are proposed to be dealt with - Estimated amounts for distribution to creditors - Desireable to enter VA - explain why - Manner in which liabilities are to be dealt with by the arrangement - Asset details with estimates of their values - Secured creditors - how they will be dealt with - Supervisor's remuneration - Antecedent transactions - Guarantees given for compay debts by other persons - EC Regulations, whether they apply

Answer 132

- Consequences of entering VA - Role of Nominee and Supervisor - Advantages and disadvantages - Required of the debtor - Duration likely for VA

Answer 133

- Face to face - Understand process - Cooperative debtor? - Key creditors' attitude - Viability of the solution

Answer 134

- History - info is sufficient for creditors to understand - Background and financial history, where relevant - Insolvency - why it happened - Roles of debtor and key duties - Outcomes estimated for VA - Financial difficulties, attempts to solve - Payments to Nominee and Supervisor for VA

Answer 135

- Final position - materially different to proposal? - Unfair proposal (manifestly) - Consent to modifications by debtor - Advice - debtor had and confirmed in writing - Reasonable prospect of VA being approved and implemented

Answer 136

- Modifications outlined to creditors - Supervised in accordance with terms - Departures identified ASAP - Monitored progress - Discretion exercised by Supervisor - Enquiries dealt with - Variations approved - Costs fully disclosed - Closed promptly on completion

Answer 137

5 business days

Answer 138

ALLOCATE CASH - assets acquired post bky and pre discharge can be claimed for the estate - liability for bky offences - concealment/falsification - legal actions stayed - or becomes receiver and manager of estate pending trustee - credit rating impaired - antecedent transactions may be recovered by trustee - transactions subject to scrutiny - employee contracts deemed to be terminated - contempt of court if do not assist trustee - asset dispositions are void without court approval - special manager may be appointed - home likely to be realised

Answer 139

AA BAG MANIACS - ASSETS - DELIVER TO OR - ACCOUNTS - PROVIDE OR WITH 3 YEARS WORTH - BOOKS AND RECORDS - DELIVER TO OR - ATTEND ON TRUSTEE AS REQUIRED - GIVE TRUSTEE ALL INFORMATION - MUST ATTEND ON OR - ATTEND PUBLIC EXAMINATION BY OR IF NEEDED - NOTIFY TRUSTEE OF ASSETS ACQUIRED/INCOME INCREASE WHILE UNDISCHARGED - IPO/IPA - UP TO 3 YEARS - ATTEND PRIVATE EXAMINATION BY TRUSTEE IF NEEDED - COURT - MUST DO AS IT DIRECTS FOR PURPOSES OF BKY - SOA - PROVIDE IF NEEDED

Answer 140

BBC DITTO - BANK ACCOUNT - NEED LEAVE TO OPERATE - BRO/BRU - CREATE, MANAGE OR PROMOTE A COMPANY WITHOUT COURTS PERMISSION - DIRECTOR - CANNOT ACT WITHOUT LEAVE - IP - CANNOT BE - TRADE - CANNOT WITHOUT LEAVE OF OR/TRUSTEE - TRADE UNDER DIFFERENT NAME WITHOUT DISCLOSING BKY STATUS - OBTAIN CREDIT OF £500 OR MORE WITHOUT DISCLOSING BKY STATUS

Answer 141

During Twenty Two BC CATBIRD FIT - DESTRUCTION OF BOOKS AND RECORDS DIARISED - TAX PAPERWORK FILED (CT, PAYE AND VAT) - TAX LIABILITIES PAID (CT, PAYE AND VAT) - BANK ACCOUNTS RECONCILED AND FUNDS IN HAND ACCOUNTED FOR - CORRESPONDENCE DEALT WITH - COMPANIES HOUSE FILINGS MADE - ASSETS ON SOA DEALT WITH - TAX CLEARANCE RECEIVED FROM HMRC - BOOKS AND RECORDS REVIEWED AND INVENTORIED - INVESTIGATION WORK COMPLETED AND SIGNED OFF - RELEASE SPECIFIC BOND AFTER VACATION OF OFFICE - DECISIONS NOT TO PURSUE PARTICULAR MATTERS FILE NOTED AND SIGNED OFF - FEES AND EXPENSES DRAWN IN ACCORDANCE WITH APPROVAL OBTAINED - INSURANCE CANCELLED - THIRD PARTY FEES PAID

Answer 142

d) Student loans

Answer 143

c) The bankruptcy of a partner

Answer 144

- restoration to the position the parties would have been in had the misfeasance never taken place - Includes any interest or other enhancement of value the company may have benefited from had the directors not did what they did

Answer 145

the directors can be ordered to repay any profit or gain they have made as a result of the breach of fiduciary duty

Answer 146

- the directors can be ordered to account for any gain they have made - or to account for any loss to the company or its stakeholders

Answer 147

- Liquidator can apply to court if he considers that the basis of his remuneration is insufficient or inappropriate - he must give 14 days’ notice of the application to the Committee - If there has been a material and substantial change in the circumstances of the case since the basis was fixed... - The Liquidator can make request to the Committee for it to be changed. - The Liquidator must also have provided a fees estimate (if all or part of the remuneration is on a time cost basis) when seeking approval - so if, as well as being dissatisfied with the level, it is apparent that the estimate will be exceeded, he will also need to seek approval for that from the Committee

Answer 148

- ADM may apply to Court for extension for a specified period - ADM may also seek the consent of creditors to extend for a specified period up to one year

Answer 149

- If they have submitted a written resignation - If they become Bankrupt or subject to a DRO (although if Bankrupt, the Trustee in Bankruptcy replaces the creditor as Committee member) - If at 3 consecutive meetings of the Committee they are neither present nor represented (unless at the third of these meetings it is resolved that this rule should not apply) - If they cease to be, or are found never to have been, a creditor - If a meeting of creditors resolves (on 14 days’ notice of the resolution being tabled) that they should be removed

Answer 150

- may only be obtained for maximum of 12 months - cannot be obtained after a court order to extend has been made - cannot be obtained after expiry of the Administration period - Once extension has been obtained by consent, notice must be filed at court and with ROC

Answer 151

Repossession FLAWS - repossession of goods for ROT/HP - cannot take place - forfeiture by reentry - cannot be exercised - administrative receiver - cannot be appointed - legal processes - including proceedings, CRAR and execution) cannot be commenced or continued - winding up petitions - suspended/dismissed - security over property - cannot be enforced

Answer 152

d) distribute assets in specie

Answer 153

d) It is void

Answer 154

- Broadcast - Justify the marketing strategy - Independence - Publicise rather than simply publish - Connectivity - Comply or explain

Answer 155

- Make a winding-up Order - Dismiss the petition - Adjourn the hearing conditionally or unconditionally - Make an Interim Order - Make any order the court including in relation to any property dispositions post and petition costs

Answer 156

- the business should be marketed as widely as possible proportionate to its nature and size - Marketing should be by whatever media or other sources are likely to achieve this

Answer 157

- statement to creditors should explain the reasons underpinning the marketing and media strategy used. - A list of what marketing has been undertaken alone is not sufficient to justify the marketing strategy to creditors.

Answer 158

ADM should be satisfied as to the adequacy and independence of the marketing undertaken If the business has been marketed by the company prior to the IP being instructed, this should not be used as a justification in itself to avoid further marketing

Answer 159

- ADM must be satisfied that the best available outcome for creditors as a whole has been achieved. - marketing should be undertaken appropriate length of time to achieve this - creditors informed of the reason for the length of time decided upon

Answer 160

- marketing should include online communication, alongside other media, by default - If the business is not marketed via the internet, this needs to be justified

Answer 161

ADM needs to explain how the marketing strategy has achieved the best available outcome for creditors as a whole

Answer 162

- final progress report to be sent - within 5 business days of filing the notice of automatic end of administration with the Registrar of Companies - when making a request to creditors for extension of the Administration, or applying to Court for it - if appointed by QFC holder to company/directors, within 5 business days of filing notice that the purpose of the Administration has been achieved - when applying to Court for an order ending the Administration

Answer 163

BOAT AMP Party - Bank funds received every 14 days or immediately if £5,000 or more received - Obtain sanction if required of the creditors committee or SOS - At request of SOS send account of receipts and payments - Take possession of estate including books, papers and records - All financial records retained for 6 years following vacation of office - Make payments into ISA account of all monies received - Provide information, documents and other assistance to OR - Prepare and maintain records and accounts

Answer 164

MF F MF - Misconduct during the course of winding up - Falsification of company records - Failure to co-operate with the liquidator - Material omission from the statement of affairs - False representation

Answer 165

- Challenge the trustee’s remuneration and expenses - Request further information from the trustee - Object to the trustee’s release

Answer 166

- It is feasible - Fair to debtors and creditors - Fit to be put to creditors - Provides an acceptable alternative to bankruptcy

Answer 167

MC SATANIC - Maximise realisations for the benefit of creditors - Comply with guidelines set by the Insolvency Service - Submit a D report on such conduct - Adhere to the Code of Ethics - Take control of and realise the Company’s assets - Act objectively - Notify of appointment - Investigate the conduct of the director and affairs of the Company - Comply with statutory duties, such as providing reports and information to creditors

Answer 168

ASCERTAINED? NA - Assets that remain to be realised - Statement of the creditors’ rights to request information and right to challenge the administrator’s remuneration and expenses - Court and Court reference number - Extensions to the initial period of appointment - Remuneration - details of basis fixed or steps taken to fix it - Time cost basis, any fees which exceed the initial estimate with explanation of why and what the administrator intends to do - Administrator’s name and address, date of appointment - If exit is to precede a new form on insolvency and the report is the final - Name of company, address of registered office and registered number - Expenses incurred in the period covered by the report - Details of progress during the period of the report, including a receipts & payments account - Name and address of appointer - Any other relevant information