BTB2220 Study Guide - Final Guide: Trading While Insolvent, Cash Flow, Unsecured Debt
Document Summary
Note: the following is not intended to be a definitive answer to the question. Rather, it is intended to assist students attempting the question as a practice exam by identifying the more important issues that should have been identified and analysed. Question two (a) a(cid:374)(cid:374)e a(cid:374)d b(cid:396)u(cid:272)e a(cid:396)e the o(cid:374)l(cid:455) di(cid:396)e(cid:272)to(cid:396)s a(cid:374)d sha(cid:396)eholde(cid:396)s of ab pt(cid:455) ltd (cid:894)(cid:858)the (cid:272)o(cid:373)pa(cid:374)(cid:455)(cid:859)(cid:895). The company generally operates under the replaceable rules of the corporations act but has supplemented these with its own constitution. The constitution requires that any contract worth more than ,000 must be signed by both directors. Bruce ran into personal (ie unrelated to ab pty ltd) financial difficulties and needed to raise. He app(cid:396)oa(cid:272)hed the (cid:272)o(cid:373)pa(cid:374)(cid:455)(cid:859)s (cid:271)a(cid:374)k, the c ba(cid:374)k. the c ba(cid:374)k assu(cid:373)ed that the finance sought was for the company and agreed to provide the funds by way of an u(cid:374)se(cid:272)u(cid:396)ed loa(cid:374) to the (cid:272)o(cid:373)pa(cid:374)(cid:455).
