JSB171 Lecture Notes - Lecture 1: Natural Person, Supreme Court Act, Mercedes-Benz W140
Document Summary
Loan capital: same capacities as individual (s124) including power to take out loans, as well as power to . To give security by charging its uncalled capital (unpaid shares = asset) s124(1)(e) Grant a floating charge over the company s property s124(1)(f) Funds can be borrowed from : banks, investing public (debenture issue, private lender may also be a shareholder. Protection for creditors insolvent trading: s588g and 588v. Regulation of reduction of share capital not permitted where it would materially prejudice company s ability to repay its creditors. Indoor management rule & assumptions which lenders can make to ensure validity of agreement & security: s129. Cl any document which is evidence of a debt. Handevel pty ltd v csd (vic: does not include a bill of exchange, debt often secured but not necessary, contract & property law (if secured) Ca a legally binding undertaking to repay a debt: s9: chose in action, debenture is a security : s92(1)(a)
