LAWS3445 Final: LAWS3445 Full notes for final exam
Document Summary
If company cannot pay, chargee then appoints a receiver: chargee serves a demand, accelerates the debt, receiver takes control of insolvent corporation(cid:495)s assets, receiver sells assets to satisfy creditor(cid:495)s debt. Receiver(cid:495)s powers sourced in court order disputes. Informal regimes: moratoriums/work-outs, contractual arrangement with creditors, schemes of arrangement, court order to summon a meeting of creditors, creditors vote on whether or not to accept a scheme, court enforceable, alternative to voluntary administration, restructures. )ndividual may seek a debtor(cid:495)s petition: creditor petitions for bankruptcy, involuntary bankruptcy, debt agreement, entering into an arrangement sanctioned by bankruptcy act with creditors, assets under k, personal insolvency agreement. 1. 2 objectives and instruments: facilitate an orderly recovery from companies in financial difficulty in an impartial and expeditious manner. Suspension of court proceedings against insolvent company: plaintiffs lodge a proof of debt, orderly distribution of assets, liquidator liquidates [unsecured] assets and distributes in order, fair and equitable system of ranking claims, dissolution of company.
