LW G Insolvency law

In a members' voluntary liquidation, the directors must make:

• 1 A declaration of solvency
• 2 A debenture
• 3 A statutory demand
• 4 A petition to the court

Who controls a creditors' voluntary liquidation?

• 1 The company secretary
• 2 The directors alone
• 3 The tax authority
• 4 The creditors

Compulsory liquidation is ordered by:

• 1 The court
• 2 The auditor
• 3 The members by resolution
• 4 The directors

On liquidation, which are paid first?

• 1 The costs of the liquidation
• 2 Members
• 3 Unsecured creditors
• 4 Floating charge holders

What is the correct order of payment after secured fixed charge assets are dealt with?

• 1 Floating charge holders, members, unsecured creditors
• 2 Preferential creditors, floating charge holders, unsecured creditors, then members
• 3 Members, preferential creditors, unsecured creditors
• 4 Unsecured creditors, preferential creditors, members

What is the main purpose of administration?

• 1 To dissolve the company at once
• 2 To rescue the company or achieve a better result for creditors than liquidation
• 3 To pay dividends to members
• 4 To remove the directors permanently

What does the moratorium in administration do?

• 1 It removes the creditors' security
• 2 It appoints new directors
• 3 It stops legal action against the company without consent
• 4 It cancels the company's debts