Insolvency

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  • Created by: jutnut
  • Created on: 07-07-17 16:50

1. When is wrongful trading relevant?

  • When an employee continues trading and knew or ought to have known company has no reasonable prospects
  • When a director continues trading and knew or ought to have known company has no reasonable prospects
  • When a director took every step with a view to minimising the potential loss to the company’s creditors…he ought to have taken
  • When the company continues trading and knew or ought to have known company has no reasonable prospects
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Other questions in this quiz

2. Tests for insolvency under s.123IA 1986

  • Cash Flow and Cash Sheet Insolvency
  • Cash Flow Only
  • Cash Flow and Balance Sheet Insolvency
  • Bankruptcy

3. Which procedure(s) are largely contested?

  • CVAs
  • Administration
  • Administration and Receivership
  • Members voluntary liquidation

4. What is the first order of priority on liquidation?

  • Liquidator’s costs and expenses of realising fixed charge assets
  • Fixed charge holders (according to the extent of their security)
  • Liquidator’s general costs and expenses of the liquidation
  • Shareholders (according to the rights attaching to their shares)

5. What are the four types of creditors?

  • Fixed charge holders, floating charge holders, shareholders and banks
  • Fixed charge holders, preferential, floating charge holders and shareholders
  • Fixed charge holders, preferential, floating charge holders and unsecured
  • Secured, unsecured, shareholders and preferential

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